US accounts for highest FPI investment in India, Luxembourg next in list: Sebi
The United States accounts for the highest share of Foreign Portfolio Investors (FPIs) investing.
In India during the fiscal year 2023-24, highlights a report by the Securities and Exchange Board of India. (SEBI)
The report also added that as of March 31, 2024, the total number of registered FPIs in India reached 11,219. This marks a slight increase from the previous year, where the number stood at 11,081. Out of the total registered FPIs, the United States led with 3,457 investors.
SEBI’s report emphasized the distribution of FPIs across different countries. The United States topped the list with 3,457 registered FPIs, followed by Luxembourg with 1,393 and Canada with 804.
The report provided a detailed analysis of the country-wise distribution of FPIs, including their Assets Under Custody (AUC). The AUC refers to the total value of assets managed by these FPIs and held under the custody of custodians.
As per the report, “As on March 31, 2024, 11,219 FPIs were registered in India from various jurisdictions. The highest registration was from USA (3,457) followed by Luxembourg (1,393) and Canada (804).”
In terms of assets, the report highlighted a significant increase in the value of AUC. By the end of March 31, 2024, the AUC of custodians of FPIs grew by 42.8 per cent to ₹69.5 lakh crore, compared to ₹48.7 lakh crore at the end of March 31, 2023. This rise underscores the growing confidence of foreign investors in the Indian market.
The report also revealed that equity assets made up 92.2 per cent of the total AUC. The highest contributions to these equity assets came from the USA, which accounted for 39.2 per cent of the total, followed by Singapore at 9.8 per cent, and Luxembourg at 7.1 per cent. This robust growth in AUC, particularly in equity assets, reflects the increasing interest and confidence of foreign investors in India’s financial markets.
The SEBI report also revealed that the Foreign Portfolio Investment (FPI) in India during 2023-24 was the highest since 1992-93. It added that Foreign Portfolio Investment and foreign venture capital investment are crucial for emerging economies like India. FY 2023-24 was an exceptional year for India in terms of foreign portfolio investment flows.
India’s continuing growth resilience, financial stability, reining in of inflation, fiscal consolidation coupled with the persistence of inflation in advanced economies, uncertain geopolitical scenarios, etc., attracted a record level of foreign flows to India.