FPIs withdraw Rs 7,712 cr from stocks in July so far

FPIs had been net investors in the equity segment in the previous five months.

Govt may cap overseas borrowing at USD 5 billion this year: Report

DBS Bank suggested hiking the cap on foreign funds' investment in domestic debt is a better option.

Tax experts say 30-40 per cent of them, registered as trusts, could be affected by the new rules.

FPIs pulled out money from equity markets for five of the six sessions following the Budget, which was presented on July 5.

FPIs get covered by higher tax rate as they have been investing as a non-corporate entity such as trust or association of persons.

There is a need to manage the risks associated with overseas sovereign borrowings, said CEA K V Subramanian.

As per latest data, FPIs withdrew amount of Rs 3,710.21 crore from equities but invested Rs 3,234.65 crore in the debt.

Finance Minister Nirmala Sitharaman in the Budget for 2019-20 proposed easing KYC norms for foreign portfolio investors.

So far in 2019, the FPIs have invested a net cumulative amount of Rs 87,313.22 crore since January, the data showed.

P-note holdings in equities stood at Rs 61,574 crore, followed by debt (Rs 19,681 crore) and derivatives (Rs 193 crore).