FPI outflows of USD 11 bn in Oct-Dec being analysed: SEBI

Kolkata: The outflow of USD 11 billion of foreign portfolio investment in the October-December quarter is being analysed to assess the extent of impact of demonetisation on the outflows.

"It is being analysed but it will take 3-4 months time," SEBI chairman U K Sinha said here today during an interactive session at Bharat Chamber of Commerce.

There were few other global developments like US presidential election, a hike in Fed rate along with demonetisation announcement during the period.

There had been reports of spurt in outflow soon after demonetisation announcement indicating a reason for capital outflow. Sinha quoting International Monetary Fund projections said going by this, the impact of demonetisation is short term.

IMF has scaled down growth projection by 100 basis points to 6.6 per cent for the current fiscal but growth for 2017 is pegged at 7.2 per cent.

Sinha also said the country's capital market is now more resilient and "our dependence on foreign flows is getting lower compared to few years back."

Despite the outflows, Indian capital market and the rupee remained stable. Had it been 3-4 years before then the market and rupee would have been hurt badly. Sinha said SEBI was actively assisting other agencies to curb black money.

The SEBI chief also warned that with improvised surveillance the regulators are capable of detecting income suppression of those using capital market route and was already working on it.

Since 2014, some 200 cases involving Rs 10,000 crore had been detected to be suppressed, he added.