Foreign Portfolio Investors (FPI) are expected to discuss issues related to the development of the fund management industry and investments in the corporate bond market, among others, with the Finance Ministry on Tuesday.
The Modi-led Government, which seeks to improve the ease of doing business in India, has convened the meeting with FPIs on a range of issues affecting their business decisions in India.
This meeting, which is expected to be chaired by Economic Affairs Secretary Shaktikanta Das, comes on the heels of the roadshows that Finance Minister Arun Jaitley and his officials held in countries such as Singapore, Hong Kong and the US recently.
About 8,000 FPIs are now registered with SEBI, which had last year come out with separate regulations for them. Interestingly, the meeting is happening at a time when FPIs — owing to volatility in the global financial markets and slowdown in China — have looked to pull out money from emerging markets, including India.
While India has seen a robust flow of foreign direct investment (FDI) in recent months, the same cannot be said about foreign portfolio flows into India.
FDI inflow In the first quarter this fiscal, nearly $10 billion had come in the form of FDI inflows.
In the entire 2014-15, FDI inflows stood at $30.9 billion, much higher than $24.3 billion in the previous financial year.
Representatives of the Reserve Bank of India and SEBI have also been invited for the meeting, an official release said.
The Finance Ministry will on Wednesday hold separate parleys with domestic market participants. The discussions will include integration of various segments of the market, increasing retail participation and deepening of corporate bond market.