GS-III: Economy, Environment, S&T
Foreign Portfolio Investors (FPIs)
Not met yet — counts as met once you answer a question on it.
Foreign portfolio investment encompasses holdings in Indian equities, debt instruments, and hybrid securities by overseas investors. SEBI (FPI) Regulations 2019 govern registration and define two investor categories (I and II), along with investment limits in government securities and corporate bonds, KYC norms, and beneficial-ownership disclosure requirements. FPIs are distinct from FDI in ownership scale and voting rights. The earlier Foreign Institutional Investor (FII) category was reclassified as FPI from 2014; pre-2014 literature on sector caps, SEBI/RBI registration, and FII-flow impact on current-account volatility remains relevant.