The Reserve Bank of India increased the limits for investment by FPIs for the January-March 2018 quarter by Rs 6, 400 crore in Central Government Securities (G-Secs) and Rs 5, 800 crore in State development loans (SDLs). What is the meaning of I in FPI?

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The Reserve Bank of India increased the limits for investment by FPIs for the January-March 2018 quarter by Rs 6, 400 crore in Central Government Securities (G-Secs) and Rs 5, 800 crore in State development loans (SDLs). What is the meaning of “I” in FPI?

A	Investors
B	Insurance
C	Installment
D	Investment

Explanation:

Detailed explanation-1: -The limits for FPI investment in Government securities (G-secs), State Development Loans (SDLs) and corporate bonds shall remain unchanged at 6%, 2% and 15% respectively, of outstanding stocks of securities for FY 2022-23.

Detailed explanation-2: -The total FPI sell figure through the exchange for CY 2022 is ₹1, 46, 048 crore.” But Vijayakumar also revealed that FPIs have invested ₹24608 crore through the primary market in 2023. This takes the net capital outflows to ₹121439 crores.

Detailed explanation-3: -Detailed Solution. The government has permitted 20% of Foreign Direct Investment in Banking-public Sector. Foreign investment involves investments of funds abroad in exchange for financial return.

Detailed explanation-4: -(b) The aggregate foreign investment in a private bank from all sources will be allowed up to a maximum of 74 per cent of the paid up capital of the Bank. At all times, at least 26 per cent of the paid up capital will have to be held by residents, except in regard to a wholly-owned subsidiary of a foreign bank.

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