Inflows into equity funds have eased sharply
Moves like direct tax reform and actual divestment will send out the right signals
Existing limit for FPI investment in G-secs is 6% of the outstanding stocks of securities; govt may announce increase to 10% in Union Budget 2020
FPIs had invested a net sum of Rs 16,037.6 crore in October and Rs 6,557.8 crore in September
Flows have accelerated since corporation rate cut, lifting benchmarks by 13%
Market players said short-covering and sustained foreign flows ensured markets remained bullish
The total value of investments via P-notes in the Indian markets (including equity, debt, and derivatives) rose to Rs 76,773 crore till the end of October from Rs76,611 crore at September-end
Himanshu Srivastava, senior analyst manager research at Morningstar Investment Adviser India said, mainly the domestic factor led to the foreign inflows
FPIs have turned negative and the budgetary announcement on tax surcharge has been a factor that has restricted their activity
The eligibility norms for NRIs/OCIs, however, have been retained according to the erstwhile circular.
Under the new norms, all insurance entities and funds from FATF member countries have been classified as category-I FPIs
The bank last week faced a Rs 1 crore fine from the RBI for not complying with shareholding norms under the licensing rules
Prior to the reclassification, less than 3% of the FPIs were part of Category-I and more than four-fifths were part of Category-II.
FPIs have been net buyers for the second consecutive month. In September, FPIs invested a net Rs 6,557.8 crore in the domestic capital markets
So far this calendar year, FPIs' stakes in SBI Life, Insurance ICICI Lombard and HDFC Life have risen by 18.85, 8.62 and 7.71 percentage points, respectively, since the December 2018 quarter
Foreign investors put in a net sum of Rs 4,970 crore in equities and a net Rs 102 crore in the debt market during October 1-18
Overseas investors were net buyers in the preceding month and had infused a net sum of Rs 6,557.8 crore in the domestic capital markets (both equities and debt), according to the data.
P-notes with derivatives as underlying may be allowed
The economic crisis can be fixed only with genuine, brave reform. If this Modi govt can't do it, it will confirm fears that it has lost its mojo
The crisis at PMC Bank has led to fears amongst investors that the money of ordinary depositors will be blocked