Over 200 foreign portfolio investors (FPIs), who have exposure to India’s financial markets, say that the cost of trading is high compared to other emerging markets, in a latest PwC India report. A significant majority of the FPIs also view India’s current regulatory and tax environment still challenging, compared to other markets, according to the report titled, ‘Foreign Portfolio Investor Survey 2016-17 – India Moving in the right direction’.
These findings came from a PwC report, after they interviewed 203 FPIs from across the United States, UK and Asia Pacific regions in the April to June 2016 quarter. India, in a still uncertain global economic environment, remains one of the more attractive destinations for investments, due to its favourable trade and settlement cycles, moderate tax rates and adequate investment limits.
In 2015, FPIs invested a net Rs 63,663 crore through equity and debt. In 2016, between January and August, FPI investments stood at a net Rs 31, 885 crore. The benchmark 30 share Sensex index closed at 28,005.37 points, now edging close to a 52-week high.
Nearly a third (27 percent) of the FPIs surveyed by PwC also indicated a preference of tapping the Indian markets through P-notes (participatory notes). The majority (73 percent) still prefer to invest directly in the Indian markets.