Over 1,500 fresh FPIs register in Apr-Sep of FY17


Business, Market

In the entire last fiscal, a total of 2,900 FPIs had received approval from Sebi.

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New Delhi: More than 1,500 new foreign portfolio investors (FPIs) have registered with capital markets watchdog Sebi in the first six months of the current fiscal, indicating a sign of their willingness to be a part of India's growth story.

In the entire last fiscal, a total of 2,900 FPIs had received approval from Sebi.

The number of FPIs with Sebi approval increased to 5,828 at the end of October from 4,311 in March-end, reflecting an addition of 1,517 such investors, according to the latest data from the Securities and Exchange Board of India (SEBI).

FPI investors consider India as a preferred and stable market, given its macro-economic stability, long-term growth prospects and ongoing economic and social reforms, market experts said.

Besides, Sebi has decided to offer direct entry to well-regulated foreign investors for investing in corporate bonds, they added. They pumped in over Rs 56,500 crore in the capital markets (debt and equity) in April-September period.

In a big revamp, Sebi had in 2014 released norms that clubbed different categories of foreign investors into a new class called FPIs. FPIs have been divided into three categories as per their risk profile and KYC (know your customer) requirements, while other registration procedures have been made simpler for them.

They are granted permanent registration as against the earlier practice of approval granted for one or five years to overseas entities seeking to invest in Indian markets. The registration remains permanent unless suspended or cancelled by the board or surrendered by FPI.