Global index provider was expected to hike the weight after Centre's decision to virtually increase investment limit for overseas investors in domestic firms
Foreigners also sold $599 million in Thai bonds in the previous month
Domestic mutual funds pumped in Rs 52,850 crore in equities during CY19
Brokerages, online platforms are making foraying into foreign equities easier
Prior to this, FPIs withdrew a net Rs 2,985.88 crore from the Indian capital markets (both equity and debt) during July 1-31
The government expects to get just Rs 2,724 crore from the surcharge levied
Foreign brokerage Morgan Stanley says India's weight in the MSCI Emerging Market (EM) index could increase by 146 basis points (bps) if all these measures are implemented
They have been on an unbroken selling streak since the Union Budget, spooked by increase in income-tax surcharge, taxes on buybacks, and lack of stimulus to prop up the economy
Foreign investors have pumped more than $11 billion into Indian equities this year on bets there will be political stability and more room for a majority government to push for economic reform
With the option to carry forward losses, overseas investors from Mauritius, Singapore prefer Indian laws
Equity investments on or after April 1, 2019 will be taxed 10% for investments greater than one year, and at 15% for those below a year
Fund managers have been asked by India's stock-market regulator to come up with a list of "high-risk" countries
Overseas investors have been huge sellers since the start of August on concerns of a slowdown in the domestic economy