FPIs pull out over ₹35,000 cr in Indian stocks in Sept: Why SEBI’s easier access reforms alone may not help
AI Summary
The recent withdrawal of ₹35,860 crore by foreign portfolio investors from Indian equities underscores the ongoing challenges India faces in attracting foreign capital, despite regulatory efforts to simplify market access. As global investors weigh their options, the competitive landscape is crucial; if other markets offer better risk-adjusted returns, India may continue to see capital outflows. Retail investors should remain cautious and consider the broader economic factors, including global interest rates and oil prices, that could impact market sentiment and performance in the near term.
Foreign portfolio investors (FPIs) returned to selling Indian equities in September after two consecutive months of inflows, highlighting a problem that goes beyond the ease of entering the Indian market.
While the Securities and Exchange Board of India (SEBI) has been working with the Reserve Bank of India (RBI) to simplify onboarding and reduce regulatory friction, foreign investors continue to weigh India against competing markets on the basis of returns, yields, currency and global risk.
Original Article
Published on Livemint
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This is a market news update from Livemint, published on 03 October 2026.
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