Last updated: Jun, 2020
Foreign Portfolio Investors/Foreign Institutional Investors (FPI/FII) have been one of the biggest drivers for India’s financial markets, having invested around Rs 12.30 lakh crore (US$ 174.55 billion) in India between FY02-21 (till June 09, 2020). Highly developed primary and secondary markets have attracted FIIs/FPIs to the country. Investment made by FIIs/FPIs in India is regulated by the Securities and Exchange Board of India (SEBI), while the ceiling on such investments is maintained by the Reserve Bank of India (RBI). Type of FIIs investing in India are as below:
The total market capitalisation (M-cap) of all the companies listed on Bombay Stock Exchange (BSE) rose to a record level of Rs 113.48 lakh crore (US$ 1.60 trillion) in 2019-20 and reached Rs 136.06 lakh crore (US$ 1.93 trillion) in 2020-21 (till June 09, 2020).
Some of the recent and significant FII/FPI developments are as below:
India is being viewed as a potential opportunity by investors with the economy having the capacity to grow tremendously. Buoyed by strong support from the Government, FII investment have been strong and is expected to improve going forward.
Mr Mark Machin, Chief Executive Officer, Canada Pension Plan Investment Board (CPPIB), has expressed confidence in the Indian equity market and stated that the country is one of the best investment destinations based on its demographic growth, increased productivity, and long-term economic growth potential.
"The FII participation has been very consistent as far as India is concerned and we see the trend continuing. We have been overweight India in the context of Asia and emerging markets since November 2013 and that stance very much continues," said Mr Bharat Iyer, MD, Global Research, JP Morgan India.
Note: Conversion rate used in April 2020, Rs 1 = US$ 0.013123
Last Updated: April 03, 2020