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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 | 8:25 AM IST

The total assets under custody (AUC) from Mauritius declined nearly 42 per cent to Rs 6.66 trillion at the end of March 2023, from Rs 10.88 trillion a year ago.

Updated On: 10 Apr 2023 | 6:02 AM IST

Tobacco manufacturer ITC, Godfrey Phillips India, and VST Industries have gained since the Union Budget on February 1, even as the benchmark Sensex declined close to 3%

Updated On: 20 Mar 2023 | 6:00 AM IST

The brokerage said it sees continued strength in the refining business, a likely rebound in petrochemical spreads from decadal low levels from China re-opening

Updated On: 16 Mar 2023 | 11:43 PM IST

To make a representation to FinMin for relief

Updated On: 14 Mar 2023 | 11:24 PM IST

Sensex, Nifty plunge 1.5% amid contagion fears

Updated On: 13 Mar 2023 | 11:55 PM IST

On a year-to-date basis, FPIs have been net sellers to the tune of Rs 20,606 crore

Updated On: 13 Mar 2023 | 6:05 AM IST

Equity markets would be mainly driven by global trends and foreign fund trading activity in the holiday-shortened week, analysts said

Updated On: 05 Mar 2023 | 10:33 AM IST

Adani-related flows, weaker dollar index push Rs up to one-month high

Updated On: 03 Mar 2023 | 11:52 PM IST

FPI holding rose to 20.18%, reinforced by Rs 47,349-crore inflows

Updated On: 13 Feb 2023 | 6:10 AM IST

One of the prominent reasons for this net outflow is higher valuation of Indian equities as against some of the other comparable markets

Updated On: 12 Feb 2023 | 10:45 PM IST

In addition, investors were sitting on gains from Indian stocks that could be realised to offset losses elsewhere, the survey noted

Updated On: 31 Jan 2023 | 5:27 PM IST

Rising credit growth, falling NPAs responsible for the pivot

Updated On: 09 Jan 2023 | 6:10 AM IST

FPIs have turned sustained sellers in the Indian market and sold for 11 consecutive days taking cumulative selling to Rs 14,300 crore, says V.K. Vijayakumar

Updated On: 07 Jan 2023 | 2:31 PM IST

FPIs sold shares worth Rs 2,902 cr, according to provisional data from exchanges

Updated On: 06 Jan 2023 | 11:42 PM IST

Wall Street's main stock indices were down more than 2 per cent in early trade

Updated On: 15 Dec 2022 | 11:16 PM IST

About 1.8 million new accounts added, 20% below monthly average for calendar 2022

Updated On: 08 Dec 2022 | 10:58 PM IST

Capital markets regulator Sebi has restructured its advisory committees pertaining to foreign portfolio investors (FPIs) and social stock exchange

Updated On: 29 Nov 2022 | 4:00 PM IST

Primary market momentum seen sustaining in an otherwise 'lacklustre' month

Updated On: 28 Nov 2022 | 11:36 PM IST

Varun Beverages, Tube Investments, IHCL seen as potential inclusions

Updated On: 08 Nov 2022 | 9:59 PM IST