Over 1,300 new foreign portfolio investors register in Apr-Aug FY17

New Delhi: More than 1,300 new foreign portfolio investors (FPIs) have registered with capital markets regulator Sebi in April-August of 2016-17, showing a sign of their willingness to be part of India's growth story.

In the last fiscal, a total of 2,900 FPIs had received approval from Sebi.

The number of FPIs with Sebi approval increased to 5,626 at the end of August from 4,311 in March-end, reflecting an addition of 1,315 such investors, latest data from the Securities and Exchange Board of India (Sebi) showed.

FPI investors consider India as a preferred and stable market, given its macro-economic stability, long-term growth prospects and ongoing economic and social reforms, market experts said.

Besides, Sebi has decided to offer direct entry to well-regulated foreign investors for investing in corporate bonds, they added.

They had pumped in over Rs 36,000 crore in the capital markets (debt and equity) in April-August period.

In a big revamp, Sebi had in 2014 released norms that clubbed different categories of foreign investors into a new class called FPIs.

FPIs have been divided into three categories as per their risk profile and KYC (know your customer) requirements, while other registration procedures have been made simpler for them. They are granted permanent registration as against the earlier practice of approval granted for one year or five years to overseas entities seeking to invest in Indian markets.

The registration remains permanent unless suspended or cancelled by the board or surrendered by FPI.