USA accounts for Highest FPI investment in India: SEBI Report

Current Context: On 9th August 2024, The Securities and Exchange Board of India (SEBI) released its annual report for 2023-2024, highlighting the significant role of Foreign Portfolio Investors (FPIs) in India's financial markets.

• Key Findings:
• Dominance of the United States: The US emerged as the largest source of FPI investment in India, accounting for the highest number of registered FPIs (3,457) as of March 31, 2024.
• Growth in FPI Registration: The overall number of registered FPIs in India increased to 11,219, indicating growing interest from foreign investors.
• Surge in Assets Under Custody (AUC): The total value of assets held by FPIs under custodianship experienced a substantial growth of 42.8% to ₹69.5 lakh crore. This reflects increased confidence in the Indian market.
• Equity Dominance: Equity assets constituted the majority (92.2%) of the total AUC, with the US being the top contributor at 39.2%. Singapore and Luxembourg followed with 9.8% and 7.1% respectively.
• Record FPI Inflows: The financial year 2023-24 witnessed the highest FPI inflows since 1992-93, underscoring the positive sentiment towards the Indian economy.

Question:

1 Which country is the largest source of FPI investment in India as per the SEBI annual report 2023-2024?

• A) United Kingdom
• B) Singapore
• C) United States
• D) Japan

Answer: C) The report clearly states that the US is the largest source of FPI investment in India.