BANKING AFFAIRS

Detailed explanation-1: -Foreign portfolio investment (FPI) involves holding financial assets from a country outside of the investor’s own. FPI holdings can include stocks, ADRs, GDRs, bonds, mutual funds, and exchange traded funds.

Detailed explanation-2: -Foreign portfolio investments are investments made by those interested in diversifying their portfolios by investing in shares, bonds, mutual funds or other assets/securities in a foreign country. Typically, growing economies with a lot of scope for growth see greater FPIs.

Detailed explanation-3: -Regulated by SEBI, the FPI regime is a route for foreign investment in India. The FPI regime came as a harmonised route of foreign investment in India, merging the two existing modes of investment, that is, Foreign Institutional Investor (’FII’) and Qualified Foreign Investor (’QFI’).

Detailed explanation-4: -Foreign portfolio investment (FPI) is a common way to invest in overseas economies. It includes securities and financial assets held by investors in another country. Securities (in FPI) include stocks or American Depositary Receipts (ADRs) of companies in nations other than the investor’s nation.

Detailed explanation-5: -FDI implies investment by foreign investors directly in the productive assets of another nation. FPI means investing in financial assets, such as stocks and bonds of entities located in another country.