The Economic Times
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| 27 February, 2021, 06:48 AM IST | E-Paper


    FPIs’ portfolio value hits a record $575 billion

    The FPIs have been net buyers of Indian equities in nine out of the past ten months.

    FPIs pump in Rs 24,965 crore in Indian markets in February so far

    According to depositories' data, FPIs pumped in Rs 24,204 crore into equiti...

    10 sectors that gained most as FPIs pumped $34 bn into D-Street

    Of the total FPI assets of $592.5 billion, $537.4 billion were in equities an...

    • Overseas investors poured in Rs 20,593 crore into equities and Rs 1,445 crore in the debt segment, taking the total net investment to Rs 22,038 crore during February 1-12.

      Move to make it easier for offshore fund managers trading on Indian exchanges to set up shop in Dubai and Abu Dhabi

      Sebi regulations currently restrict foreign funds looking to shift base to India. To do so, they would have to sell their portfolios and buy them back through the Indian arms, something that would lead to short-term and long-term capital gains tax implications of 10-15%, experts estimate.

      This announcement couldn’t have come at a better time for foreign portfolio investors (FPIs). In the last one year, there have been several tax rulings where treaty benefits have been denied to Singapore and Mauritius entities, citing tax avoidance rules.

      Fund managers say, the government's decision to set aside concerns over bloating fiscal deficit and focus on spending to boost the pandemic-hit economy will revive growth.

      In the current system, the TDS being charged for FPIs was higher than the actual tax liability of FPIs. Further, offshore funds had to wait until the end of the financial year to claim a refund from the Indian tax department.

      In the Union Budget for 2021-22, Finance Minister Nirmala Sitharaman also proposed exempt taxes on dividends on REITs and InvITs, which will make such investment vehicles attractive and lucrative for investors.

      According to FPI statistics available with depositories, overseas investors pumped in a net of Rs 19,473 crore into equities but pulled out Rs 4,824 crore from the debt segment between January 1 and January 29.

      With Wednesday's fall, the Nifty has dropped 4.6% from its record high of 14,753 on Thursday. The Sensex has dropped 4.8% from its all-time high of 50,184 set on the same day.

      Analysts said the long-short ratio of foreign investors’ futures positions, which indicates the number of bullish positions against bearish in the futures segment, has fallen to 58 per cent from over 80 per cent at the beginning of the January series. This shows FPIs have cut their bullish bets in Nifty futures.

      What foreign portfolio investors are expecting from Finance Minister Nirmala Sitharaman in Union Budget 2021

      On January 5, ET had reported that few foreign funds along with ASIFMA had complained to Sebi that some market participants were ‘capitalising’ on insider information about block deals and were trying to interfere with the deals.

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