FPI consists of securities and other financial assets passively held by foreign investors. What is the full form of FPI?

Question

Question

This question was previously asked in

SSC GD 18 Nov 2021 Shift 3 (Official Paper)

Answer 1

The correct answer is Foreign Portfolio Investment.

Key Points

Foreign portfolio investment (FPI) involves an investor purchasing foreign financial assets.
It is generally a short-term investment.
Entry and Exit are relatively easy.
FPI results in only capital inflows.

Additional Information

The FPI is an investment made by non-residents in Indian securities such as shares, corporate bonds, infrastructure securities government bonds etc.
The FPI investment regulate by SEBI
Mauritius is the highest FPI investor in India(as of Oct 2022).
Singapore is the second highest investor in India(as of Oct 2022).
The FPI was started in 1992, as India opened up its economy and allowed the investment

Important Points

About SEBI (As of August 2022)
- The Securities and Exchange Board of India was constituted as a non-statutory body on April 12, 1988
- It monitors and regulates the Indian capital and securities
- The current chairman of SEBI is Madhabi Puri Buch