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FPI

About FPI

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What is FPI

Foreign portfolio investment (FPI) is a common way to invest in overseas economies. It includes securities and financial assets held by investors in another country. 
 
Securities (in FPI) include stocks or American Depositary Receipts (ADRs) of companies in nations other than the investor's nation. It also includes bonds or other debt issued by these companies or foreign governments, mutual funds, or exchange-traded funds (ETFs) that invest in assets abroad or overseas.
 
On a macro-level, foreign portfolio investment is part of a country’s capital account and shown on its balance of payments (BOP). BOP calculates the amount of money flowing from one country to other countries over a financial year.
 
FPI is relatively liquid depending on market volatility. 
 
Who invests through FPI?
 
Individual investors interested in opportunities outside their own country invest via FPI.  It does not give investors direct ownership of a company's assets.
 
What is surcharge?
 
Surcharge is an additional charge or tax.
 
What is FPI surcharge?
 
In 2019, the government of India proposed an increase in the tax surcharge on such super-rich tax payers who earn more than Rs 2 crore a year. While doing so, government included all the individuals and association of persons (AOPs) under the purview of the increased surcharge. Hence, they were to be subjected to the higher tax surcharge if they earned over Rs 2 crore of income a year. The move spooked investors as the surcharge would have impacted 40 per cent of the FPIs.
 
However, on August 23, 2019, giving in to the demands of overseas investors, finance minister Nirmala Sitharaman removed enhanced surcharge on FPIs.
 

Latest Updates on FPI

Jury is still out on how soon index will top 20k; market has overshot and undershot valuations before. If strong momentum in FPI flows sustains, getting to 20k may not be long, believe analysts

Updated On: 29 Jun 2023 | 8:10 PM IST

If FPI holdings decline further in the two firms, it could lead to good buying opportunities: Analysts.

Updated On: 24 May 2022 | 1:07 PM IST

FPIs have sold shares worth Rs 1.6 trn in domestic equities market so far this year. Historically, foreign investors have had high exposure to both HDFC Bank and HDFC

Updated On: 20 May 2022 | 10:51 PM IST

Sensex drops to lowest level since July; FPIs sell shares worth Rs 4,900 cr

Updated On: 20 May 2022 | 1:16 AM IST

Benchmark indices shed up to 1.5% as oil price surge trigger spook investors; war adds to concerns of slowing economic growth and inflation

Updated On: 05 Mar 2022 | 12:19 AM IST

Markets regulator Sebi has proposed allowing foreign portfolio investors (FPIs) to participate in the exchange-traded commodity derivatives market.

Updated On: 26 Feb 2022 | 12:44 AM IST

The tally was lower than Rs 25,706 cr garnered in December 2021, but is still a respectable number considering there were no large NFOs in January, unlike the previous month

Updated On: 10 Feb 2022 | 1:16 AM IST

After a brief respite at the year's start, FPIs have dumped shares worth more than $5.7 billion. More on that in our top headlines.

Updated On: 09 Feb 2022 | 7:55 AM IST

Effective April 1, 2020, Centre had relaxed FPI limit for Indian firms to the applicable FDI sectoral limit. Move led to spike in India's foreign ownership limits (FOL) in global indices

Updated On: 01 Feb 2022 | 2:12 AM IST

Social security a pipe dream for gig workers? What's K Srinath Reddy's prescription to flattening the Omicron curve? How can India sustain FPI buying in 2022? What are Treasury bills? All answers here

Updated On: 17 Jan 2022 | 8:00 AM IST

Is a dip in fertility bad for economy? Info Edge's Sanjeev Bikhchandani investment plans? What's the sector allocation for a correction-proof portfolio? Difference between FDI & FPI? All answers here

Updated On: 26 Nov 2021 | 8:48 AM IST

Most of us must have heard about FDIs and FPIs, and know that they refer to investments from foreign countries. But what exactly are they? We find out in this report

Updated On: 25 Nov 2021 | 11:37 PM IST

But they have invested over Rs 53,000 cr in the primary market, indicating investors have been reallocating their holdings without bringing in much fresh capital

Updated On: 25 Nov 2021 | 12:43 AM IST

Even as foreign funds are getting jittery about the domestic market due to the steeply higher valuation amid the massive market rally, their holding in the domestic equities rose to $630 bn as of Aug

Updated On: 23 Sep 2021 | 8:16 PM IST

Analysts bullish over near-to-medium term

Updated On: 14 Sep 2021 | 1:53 AM IST

On Wednesday, August 25, 2021, Cassini Partners L.P. purchased 98,612 equity shares, representing 0.59% of total equity of Hind Rectifiers at a price of Rs 181.90 per share via block deal on the NSE

Updated On: 26 Aug 2021 | 10:54 AM IST

Renewed optimism around the domestic economic outlook, following an improvement in high-frequency indicators underpinned more than 3 per cent jump this week, so far

Updated On: 05 Aug 2021 | 1:36 AM IST

Adani said a section of the media indulged in "reckless" reporting on administrative actions of regulators, which resulted in a sharp fall in share prices

Updated On: 12 Jul 2021 | 9:51 PM IST

Insurance isn't a big sector in terms of weight, accounting for just 2.5% of FPI corpus. In comparison, nearly a third of FPI investments in the country are in banking and financial sector

Updated On: 08 Jul 2021 | 11:18 PM IST

Top 10% of stocks account for most of their holdings

Updated On: 08 May 2021 | 12:14 AM IST