Tag: foreign portfolio investors

Foreign investors pulled out a massive ₹41,000 crore from the Indian equity market in March in anticipation of rate hikes by the US Federal Reserve and the deteriorating geopolitical environment amid the Russia-Ukraine war, continuing their selling spree for the sixth consecutive month. Flows from foreign portfolio investors (FPIs) are expected to remain volatile in the near term given the headwinds in terms of elevated crude prices and inflation, experts said. According to data available with the depositories, FPIs were net sellers to the tune of ₹41,123 crores in the equity market last month. This was way higher than net withdrawals of ₹35,592 crore in February and ₹33,303 crore in January. Read more

SEBI has written to the custodians of foreign portfolio investors (FPIs) owning shares in six Adani Group firms, seeking information on their ultimate beneficial owners (UBO). These funds include Albula Investment Fund, Cresta Fund, and APMS Investment Fund. A bulk of India investments of these firms is concentrated in Adani Ports and Special Economic Zone, Adani Enterprises, Adani Green Energy, Adani Power, Adani Transmission, and Adani Total Gas. Regulatory sources said the capital markets regulator is looking into the holding structure of these foreign-based funds to ensure there is compliance with Sebi regulations. Read more

A fear of wealthy Chinese investors raiding the Indian stock market seems to be in rise. Securities & Exchange Board of India (Sebi) has asked custodian banks to disclose details of the ultimate beneficial owners’ of foreign portfolio investors (FPIs) based in China and Hong Kong. The UBO is the last natural person owning a fund or entities controlling a fund above a certain level. Sebi’s direction to custodians is an immediate reaction to the People’s Bank of China buying a little above 1% in HDFC considered as one of the blue-chip stocks. "Following the sharp fall in stocks, there is an anxiety among many corporates and parts of the government about Indian companies and assets facing takeover threats from Chinese investors – either private or directly or indirectly with support from the Chinese government. Probably, it’s an overreaction. But the paranoia is understandable with advanced countries like Australia creating hurdles for Chinese investors,” experts opined.