More than 1,000 new foreign portfolio investors (FPIs) have registered
with capital markets regulator SEBI in April-July of 2016-17, a sign of
their willingness to be part of India’s growth story.
This is over and above the nearly 2,900 additional FPIs who got approval from SEBI in 2015-16.
The number of FPIs with SEBI approval increased to 5,322 at the end of
July from 4,311 in March-end, translating into an addition of 1,011 such
investors, latest data from the Securities and Exchange Board of India
(SEBI) showed.
FPI investors consider India as a preferred and stable market, given its
macro-economic stability, long-term growth prospects and ongoing
economic and social reforms, market experts said.
Besides, SEBI has decided to offer direct entry to well-regulated
foreign investors for investing in corporate bonds, they added.
They had pumped in nearly Rs. 30,000 crore in the capital markets (debt and equity) in April-July.
In a big revamp, SEBI had in 2014 released norms that clubbed different
categories of foreign investors into a new class called FPIs.
FPIs have been divided into 3 categories as per their risk profile
and KYC (know your customer) requirements, while other registration
procedures have been made simpler for them.
They are granted permanent
registration as against the earlier practice of approval granted for one
year or five years to overseas entities seeking to invest in Indian
markets.
The registration remains permanent unless suspended or cancelled by the board or surrendered by FPI.
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