Foreign Portfolio Investment (FPI)

    Foreign Portfolio Investment (FPI) – these investments are done by home country citizens and firms in foreign securities or stocks or bonds or shares (debit) and by foreigners in home country securities, stocks, bonds, shares etc (credit).FPI includes FIIs investments, funds raised through DRs- GDRs / ADRs by Indian companies, FCCBs, exchangeable bonds and through off shore funds (India Millenium Deposits, Resurgent India Bonds etc. ). This type of movement in and out of a country is induced by differences in interest rate, dividends or rate of return on capital between the home country’s financial assets and those of the foreign nations.