• 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.
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