The Foreign Portfolio Investments were pulled out ₹37,632 crore from Indian equities during 2022-23, which is a 73.1 percent decline in outflows as compared to 2021-22, the Securities and Exchange Board of India said in its annual report on 7 August.
“Since Q2 of 2022-23, FPI flows to Indian markets started to turn positive with bouts of moderate selling. On a whole, FPIs pulled out ₹37,632 crore from Indian equities during 2022-23, a 73.1 percent decline in outflows as compared to 2021-22,” Sebi in its annual report said.
Adding on, the market regulator said that domestic institutional investors invested a net of ₹2.55 lakh crore in the Indian cash markets in 2022-23, as against net FPI outflows of ₹61,754 crore from the equity cash market through the stock exchange route. Sebi in the report cited strong domestic liquidity that continued to serve as a cushion for the Indian markets.
“Strong domestic liquidity continued to serve as a cushion for the Indian markets, with domestic institutional investors investing a net of ₹2.55 lakh crore in the Indian cash markets in 2022-23, as against net FPI outflows of ₹61,754 crore from equity cash market through the stock exchange route,” SEBI said.
MF Lite:
Among other details, the market regulator also said that it is engaged with the mutual fund industry to introduce ‘MF Lite’ regulations for passive funds.
“Since the current MF regulatory framework was built around active fund management, Sebi is planning to introduce Mutual Fund Lite regulations for passive funds, wherein investment decisions are not discretionary, but tied to changes in the underlying benchmark index,” the regulator said.
As per details, a passive fund is an investment vehicle that tracks a market index or a specific market segment. These funds include passive index funds, Exchange Traded Funds (ETFs), and Fund of Funds investing in ETFs.
With agency inputs.
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Updated: 07 Aug 2023, 04:16 PM IST