In the previous month, FPIs had withdrawn a record amount of over Rs 1.1 trillion on a net basis from the Indian markets
Move to benefit investors from countries and regions like Mauritius, Cayman Islands who are eyeing Category-I licence
In October, the Indian government had issued a circular raising statutory FPI limit of Indian companies to the sectoral foreign investment limit
But they must look for a cushion of safety when taking long-term positions
Market players said the higher limits have potential to attract billions in overseas flows but it may not play out immediately
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Experts believe foreign investors are withdrawing from riskier assets and are opting for safe heavens like dollar-denominated asset classes and gold
Several market observers said FPIs and other institutional investors have raised concerns regarding difficulty in liquidating their positions in cash and derivatives segment because of this scheme
Prior to this, foreign investors were net buyers for six consecutive months since September 2019
While a coordinated aggressive monetary easing from the central banks is most likely to offer some respite in the near-term, it is unlikely to improve the sentiments
Snapping their six-month buying streak, FPIs pulled out a net Rs 13,157 crore from the Indian capital markets in the first five trading sessions of March as the coronavirus outbreak spooked investors
According to depositories data, FPIs withdrew a net Rs 8,997.46 crore from equities and Rs 4,159.66 crore from the debt segment during March
On a positive note, the data, however, showed that FPIs have been net buyers in the Indian markets since September 2019
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The key issue vexing the custodians is the requirement to fill in tax details on behalf of FPIs, an area where they lack expertise and which is currently handled by the tax consultants
Of the total investments made till the end of November, Rs 52,486 crore was invested in equities, Rs 11,415 crore in debt and Rs 636 crore in the derivatives segment
FPIs have been net buyers in the Indian markets since September 2019, the data showed.
The applicants seeking FPI registration need to fill the common form prescribed by the regulator, declaration providing supporting documents and applicable fees for registration and issuance of PAN
Foreign portfolio investors (FPI) put in Rs 6,350crore in the debt segment between February 3-7, the data showed