One Third Of The Total Assets Under The Custody Of FPIs Are From The US, Says Sebi Chairman

Securities and Exchange Board of India (Sebi), Chairman Ajay Tyagi said India-US relation plays a pivotal role in domestic equity markets. This, he said, was reflected from the largest chunk of Foreign Portfolio Investments (FPIs) from the US.

“Considering that the largest number of FPIs and about one-third of the total assets under custody of FPIs are from the USA, the importance of US investments into India was emphasised especially taking into account the growing partnership between the two countries,” the chairman said.

Tyagi on Tuesday e-interacted with various stakeholders including industry and investor associations from the US.

He emphasised the increasing number of registrations of FPIs every year in the Indian equity market.

He highlighted the attractiveness of the Indian markets despite COVID-19 impact and compared the recent flow in foreign investment through the FPI route.

The FPI includes an investment of securities and other financial assets held by the investors in another country.

The chairman also made a case for Indian primary markets, secondary markets, and specific products such as Real Estate Investment Trust (REITs) and Infrastructure Investment Trust InvITs). “The participants appreciated the various initiatives taken by Sebi, especially with respect to direct listing proposal and creation of new products like REITs and InvITs which have the potential to attract more foreign investment while benefitting domestic economy given its multiplier effect,” read the note.

Further, the investors and participants from the US also voiced their queries related to the need for early finalisation of direct listing of proposals, development of the corporate bond market, reforms in the IPO regulations, and digitisation of processes amongst other issues. The e-interaction was organised by the US India Strategic Partnership Forum (USISPF).