FPIs Withdraw ₹17,900 Crore from Indian Equitie Markets in August So Far

In News:

Foreign Portfolio Investors (FPIs) have turned net sellers in the Indian equity markets, pulling out ₹17,900 crore in August 2025 so far, while investing ₹3,432 crore in the Indian debt market (Debt – General Limit).Key Points:

• Recent Trend in Equity Flows:
  • Aug 2025 (so far): –₹17,900 crore
  • Jul 2025: –₹17,741 crore
  • Jun 2025: +₹14,590 crore
  • May 2025: +₹19,860 crore
• Reason for Outflows:
  • Global interest rate trends (US Fed policy, US bond yields).
  • Currency fluctuations (rupee depreciation).
  • Profit booking by investors.
• Regulatory Framework:
  • FPIs are regulated under SEBI (FPI) Regulations, 2019.
  • Debt – General Limit: Ceiling for foreign investment in government/corporate bonds (set by RBI & SEBI).
• Difference from FDI:
  • FPI – Short-term, volatile capital via stocks/bonds.
  • FDI – Long-term investment in physical/business assets.
    
    Updated: August 9, 2025 | 8:29 PM | Source: NewsOnAir