Lok Sabha Question No. 1718 (UNSTARRED), answered on 2017-03-10
Subject: Foreign Portfolio Investment
Ministry: FINANCE
Asked by: ANTO  ANTONY

## MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO.1718

TO BE ANSWERED ON FRIDAY, MARCH 10, 2017 / PHALGUNA 19, 1938 (SAKA)

## 'FOREIGN PORTFOLIO INVESTMENT'

## QUESTION

## 1718:  SHRI ANTO ANTONY

## Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has any record regarding the inflow and outflow of Foreign Portfolio Investment (FPI) in the country during the last one year category and month-wise;
- (b) whether  it  is  a  fact  that  during  the  months  of  November  and  December  2016  the  country witnessed a negative net FPI;
- (c) if so, the details thereof and the reasons therefor; and
- (d) the corrective steps taken/being taken by the Government in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ARJUN RAM MEGHWAL)

***

(a) & (b): The details of net Foreign Portfolio Investments (FPI) made during the last one-year category and month-wise, are at Annexure.

(c)  &  (d):  FPIs  make their own investment decision. Some of  the common factors that influence FPI investment include anticipated future returns out of the proposed investment, risk taking ability of the concerned  FPI,  financial,  economic  and  monetary  policy  scenarios  in  its  own  jurisdiction  and competitive  markets,  investment  objective  and  mandate  of  the  concerned  FPI  and  other  global macroeconomic and geopolitical factors.

Government in consultation with regulators has taken a number of steps to boost the inflow of foreign  capital  to  the  country.  The  limits  for  FPI  in  the  Central  Government  securities  are  being increased in phases to reach 5 per cent of the outstanding stock by March 2018. FPIs are also permitted to  invest  in  units  of  Real  Estate  Investment  Trusts,  Infrastructure  Investment  Trusts,  Category  III Alternative Investment Funds and Securitized Debt Instruments. Recently, Government has decided to introduce a common application form for registration, opening of bank and demat accounts, and issue of PAN for Foreign Portfolio Investors (FPIs) that will greatly enhance operational flexibility and ease of access to Indian capital markets.

## Annexure

## Details of Net FPI Investments Asset-wise during last CY (2016) & CY (2017)

| Month        | INR cr.   | INR cr.   | INR cr.   |
|--------------|-----------|-----------|-----------|
|              | Equity    | Debt      | Total     |
| Jan-16       | -11,126   | 2,313     | -8,814    |
| Feb-16       | -5,521    | -8,195    | -13,716   |
| Mar-16       | 21,143    | -1,476    | 19,667    |
| Apr-16       | 8,416     | 6,418     | 14,834    |
| May-16       | 2,543     | -4,409    | -1,866    |
| Jun-16       | 3,713     | -6,220    | -2,507    |
| Jul-16       | 12,612    | 6,845     | 19,457    |
| Aug-16       | 9,071     | -2,625    | 6,446     |
| Sep-16       | 10,443    | 9,789     | 20,233    |
| Oct-16       | -4,306    | -6,000    | -10,306   |
| Nov-16       | -18,244   | -21,152   | -39,396   |
| Dec-16       | -8,176    | -18,935   | -27,111   |
| Total - 2016 | 20,568    | -43,647   | -23,079   |
| Jan-17       | -1,177    | -2,319    | -3,496    |
| Feb-17       | 9,902     | 5,960     | 15,862    |

## Details of Net FPI Investments Category-wise during last CY (2016) & CY (2017)

| Category-wise FPI net investments - CY 2016   | Category-wise FPI net investments - CY 2016   | Category-wise FPI net investments - CY 2016   |
|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|
| S. No.                                        | Name of the category/sub-category             | Net Investments (INR cr.)                     |
| 1                                             | Mutual Fund                                   | 19,798                                        |
| 2                                             | Broad Based Fund                              | 18,628                                        |
| 3                                             | Pension Fund                                  | 14,793                                        |
| 4                                             | Foreign Governmental Agency                   | 9,077                                         |
| 5                                             | Insurance/Reinsurance Company                 | 3,927                                         |
| 6                                             | International or Multilateral Organization    | 3,543                                         |
| 7                                             | Foreign Central Bank                          | 2,012                                         |
| 8                                             | Corporate Body                                | 1,596                                         |
| 9                                             | Endowment Fund                                | 1,548                                         |
| 10                                            | Investment Trust                              | 1,050                                         |
| 12                                            | Charitable Trust/Trustee of a Trust           | 1,181                                         |
| 13                                            | Foundation                                    | 132                                           |
| 14                                            | Foreign Individual                            | 26                                            |
| 15                                            | University Fund                               | (126)                                         |
| 16                                            | Charitable Society                            | (144)                                         |
| 18                                            | Sovereign Wealth Fund                         | (6,636)                                       |
| 19                                            | Asset Management Company                      | (12,310)                                      |

| Category-wise FPI net investments - CY 2016   | Category-wise FPI net investments - CY 2016   | Category-wise FPI net investments - CY 2016   |
|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|
| S. No.                                        | Name of the category/sub-category             | Net Investments (INR cr.)                     |
| 20                                            | Incorporated/Institutional Portfolio Manager  | (13,400)                                      |
| 21                                            | Others                                        | (14,425)                                      |
| 22                                            | Investment Manager/Advisor                    | (24,596)                                      |
| 23                                            | Bank                                          | (28,752)                                      |

| Category-wise FPI net investments - CY 2017 (up to Feb, 2017)   | Category-wise FPI net investments - CY 2017 (up to Feb, 2017)   | Category-wise FPI net investments - CY 2017 (up to Feb, 2017)   |
|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|
| S. No.                                                          | Name of the category/sub-category                               | Net Investments (INR cr.)                                       |
| 1                                                               | Investment Manager/Advisor                                      | 10,614                                                          |
| 2                                                               | Broad Based Fund                                                | 5,086                                                           |
| 3                                                               | Asset Management Company                                        | 1,332                                                           |
| 4                                                               | Mutual Fund                                                     | 890                                                             |
| 5                                                               | Pension Fund                                                    | 867                                                             |
| 6                                                               | Bank                                                            | 560                                                             |
| 7                                                               | Incorporated/Institutional Portfolio Manager                    | 427                                                             |
| 8                                                               | Charitable Trust/Trustee of a Trust                             | 375                                                             |
| 9                                                               | Corporate Body                                                  | 351                                                             |
| 10                                                              | Insurance/Reinsurance Company                                   | 121                                                             |
| 11                                                              | Foundation                                                      | 37                                                              |
| 12                                                              | Foreign Individual                                              | 10                                                              |
| 13                                                              | Charitable Society                                              | 2                                                               |
| 14                                                              | University Fund                                                 | (81)                                                            |
| 15                                                              | Foreign Central Bank                                            | (346)                                                           |
| 16                                                              | Endowment Fund                                                  | (389)                                                           |
| 17                                                              | International or Multilateral Organization                      | (440)                                                           |
| 18                                                              | Investment Trust                                                | (744)                                                           |
| 19                                                              | Others                                                          | (1,496)                                                         |
| 20                                                              | Foreign Governmental Agency                                     | (2,273)                                                         |
| 21                                                              | Sovereign Wealth Fund                                           | (2,537)                                                         |

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