• Foreign portfolio investment (FPI) consists of securities and other financial assets held by investors in another country.
• It does not provide the investor with direct ownership of a company’s assets.
• FPI involves the making and holding of a hands-off—or passive—investment of securities, done with the expectation of earning a return.
• Investments can be in Indian securities including shares, government bonds, corporate bonds, convertible securities, infrastructure securities etc.
• NRIs doesn’t comes under FPI.
• It is included in the Capital Account in India.