Foreign Portfolio Investment (FPI): An Opportunistic Approach for India
Dr. Suhasini Parashar
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Abstract
The focus of this article will be to study the Foreign Portfolio Investment (FPI) ,an opportunity to develop
directly the capital market . This market was not as developed before economic reform, 1991 .Since 1999 ,
financial sector reform needs for developing the financial institutional investors and corresponding capital and
commodity market . Financial products in economy effect the monetary regulation and growth rate in economy
.The difference in FDI and FPI effect on Foreign Institutional Investors . The Finance Ministry initiative for
amendment of regulations such that foreign funds can flow to the country without being with held .
International financial investments are subject to currency risks and political risk , as well as a set of
constraints such as taxation, foreign exchange controls, capital market regulations, transaction costs and
required familiarity with foreign markets . It is also necessary to develop the economy and thereby , keep the
economy always highly attractive to foreign portfolio investment and for long time intact to the Indian
economy.
Keywords: Capital Flow; Portfolio Investment; Risk
References
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