New Delhi: Financial Year (FY) 2020-21 witnessed sturdy Foreign Portfolio Investment (FPI) inflows into the Indian equity markets of Rs 2,74,034 crore, thus, reflecting steadfast confidence of international buyers in the basics of the Indian Economy, the Ministry of Finance stated on Tuesday.
The sturdy FPI flows got here on the again of quicker than anticipated financial restoration supported by a number of tranches of innovatively designed stimulus packages. The Government and regulators had additionally undertaken main coverage initiatives directed at bettering ease of entry and funding local weather for FPIs in the current previous.
These embrace simplification and rationalisation of the FPI regulatory regime, operationalisation of the web Common Application Form (CAF) for the aim of registration with SEBI, allotment of PAN and opening of financial institution and Demat accounts and many others.Â
The improve in combination FPI funding restrict in Indian firms from 24% to the sectoral cap has been a catalyst for improve in weightage of Indian securities in main equity indices, thus mobilising huge equity inflows, each passive and lively, into Indian capital markets.
The progress forecast for India in FY 2021-22 have been pegged above 10% by the World Bank, IMF and several other world analysis organisations underscoring that India will proceed to stay a gorgeous funding vacation spot in the close to future, Ministry of Finance stated.
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