USA Leads Foreign Investments in India for 2023-24, Says SEBI Report
The United States has the highest number of Foreign Portfolio Investors (FPIs) in India for the fiscal year 2023-24, according to a report by the Securities and Exchange Board of India (SEBI). As of March 31, 2024, there were 11,219 registered FPIs in India, with the USA leading at 3,457.
The report also highlighted the distribution of FPIs across different countries. Luxembourg followed the USA with 1,393 FPIs, and Canada had 804 FPIs. The total value of assets under custody (AUC) managed by these FPIs grew by 42.8% to Rs 69.5 lakh crore by the end of March 31, 2024, compared to Rs 48.7 lakh crore at the end of March 31, 2023.
Equity assets made up 92.2% of the total AUC, with the USA contributing 39.2% of the total, followed by Singapore at 9.8% and Luxembourg at 7.1%. This growth in AUC reflects the increasing interest and confidence of foreign investors in India’s financial markets.
The SEBI report also noted that the Foreign Portfolio Investment (FPI) in India during 2023-24 was the highest since 1992-93. The report emphasized that foreign portfolio investment and foreign venture capital investment are crucial for emerging economies like India. The fiscal year 2023-24 was exceptional for India in terms of foreign portfolio investment flows, driven by factors such as India’s growth resilience, financial stability, and fiscal consolidation.
Doubts Revealed
Foreign Investments -: Foreign investments are when people or companies from other countries put their money into businesses or projects in India to make a profit.
SEBI -: SEBI stands for the Securities and Exchange Board of India. It is an organization that regulates the stock market and protects investors in India.
Fiscal Year -: A fiscal year is a 12-month period used for budgeting and financial reporting. In India, it starts on April 1 and ends on March 31 of the next year.
Foreign Portfolio Investors (FPIs) -: FPIs are people or companies from other countries who invest in India’s stock market by buying shares, bonds, or other financial assets.
Assets Under Custody (AUC) -: AUC refers to the total value of financial assets, like stocks and bonds, that are managed by a financial institution on behalf of investors.
Rs 69.5 lakh crore -: Rs 69.5 lakh crore is a very large amount of money. In Indian numbering, ‘lakh’ means 100,000 and ‘crore’ means 10 million. So, Rs 69.5 lakh crore is 6,950,000,000,000 rupees.
