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News Topical, Digital Desk : The Indian stock markets are witnessing a tremendous return of foreign portfolio investors. In the first fifteen days of May 2025, FIIs have invested a total of Rs 23,778 crore in the Indian equity market. This boom is due to the strength of the domestic economy, improvement in global trade sentiments and reforms initiated by SEBI for the bond market.
V.K. Vijaykumar of Geojit Financial Services said that FIIs had sold Rs 1.16 lakh crore in the first quarter of 2025, but they are re-entering the market with a net purchase of Rs 4,243 crore in April. He cited the softening of the US-China trade war and the reduction in India-Pak tensions as the main reasons behind this change. He said that inflation is under control in India and the Reserve Bank is likely to cut interest rates two to three times in the coming time, due to which the entire economic structure of India looks favorable for investment. SEBI's recent consultation paper has also reinforced this positive attitude, which proposes to give several relaxations to foreign investors investing in government bonds through Voluntary Retention Route (VRR) and Fully Accessible Route (FAR). According to Manoj Purohit, Partner and FS Tax Leader, BDO India, SEBI has proposed relaxations such as making KYC deadlines in line with RBI standards, removing the requirement of trading and demat account. He said that the objective of these changes is to reduce the burden of regulations, simplify the process for investors and bring India's regulatory framework in line with global standards. On the other hand, Aditya Birla Sun Life AMC's Co-CIO Harish Krishnan believes that this is just the beginning of a long-term investment process of foreign investment. We will see a huge amount of foreign inflow in the coming three to four years.
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