Mumbai, 21 June (IANS). Market analysts said on Saturday that the trend of foreign portfolio investment (FPI) reversed in April and in May it saw a lot of strength, which featured positive flow. This trend continues in June.
Foreign institutional investors (FIIs) continued their purchases for the fourth consecutive day on 20 June and bought shares worth Rs 7,940.70 crore.
According to market experts, the flow recorded in May is the highest level in eight months, reflecting the revival of foreign investors in Indian markets.
“Geo-political tensions and global uncertainties, including the conflict between Israel and Iran, promoted a careful optimistic pattern in June,” said Vipul Bhowwar, Senior Director-Listed Investment of Waterfield Advisors,, Vipul Bhowwar.
He said that the domestic infrastructure improvement and long -term development -friendly perspective indicates that India can experience more continuous and stable foreign portfolio investment flows in the future if global conditions are stable.
India’s economy has emerged as one of the fastest growing and strong economies in the world supported by strong macroeconomic fundamental and vibrant policy Landscap.
The regulatory institutions of the country, led by SEBI, have constantly made constant improvements with the aim of simplifying compliance with market participation and transparency to attract global capital.
As a historic step to improve the debt market and provide the necessary liquidity, SEBI has recently announced a special regulatory discounts for FPIs investing in government securities (G-Sek).
Manoj Purohit of BDO India said, “This visionary measure JP Morgan Global EM Bond Index and Bloomberg EM Local Currency Government Index have come immediately after India joining the global bond index, which is expected to attract a large scale FPI flow.”
This move of SEBI reduces compliance burden by making the KYC review deadline with RBI criteria, exempting GS-FPI from presenting the investor group details. In addition, NRIs, OCIs and Indian citizens allow to participate in GS-FPI with low sanctions.
Additionally, FPI now gets the benefit of 30 days deadline to disclose physical changes, which was the first 7 days.
Analysts stated that these changes reflect SEBI’s risk-based regulatory approaches and are ready to increase FPI’s participation in India’s sovereign date market. India’s economic foundation remains strong, so these progressive measures will strengthen the country’s appeal as a stable and attractive investment destination for global institutional investors.
-IANS
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