29th September, 2019
Foreign Portfolio Investors (FPIs) have made a net investment of Rs 7,714 crore in the Indian capital market in September and were frequent sellers in the last two months. Actually, this is after the government withdrew the tax surcharge imposed on the FPI for economic reforms in the past, foreign investors started investing, after which the investment has increased.
In order to improve the economy, the government has made several announcements in the past, including public sector banks, the announcement of the withdrawal of FPI surcharge, new announcements regarding FDI. Last week, the government cut the corporate tax rate by about 10 percent. Apart from this, Securities and Exchange Board of India (SEBI) has also made it easier for FPIs to know their customers (KYC) rules and have also allowed them to transact in the securities market.
At the same time, according to the latest data from the depository, FPI invested Rs 7,849.89 crore in the stock market between September 3 and 27, while withdrawing Rs 135.59 crore from the bond market. Thus invested a total of Rs 7,714.30 crore in the domestic capital market.
Let us tell you that the capital market consists of investments made in the stock market, bond market and derivatives. In August last month, FPI withdrew Rs 5,920.02 crore from the capital market and Rs 2,985.88 crore in August.