UPSC Exam  >  UPSC Questions  >  With reference to the Foreign portfolio inves... Start Learning for Free
With reference to the Foreign portfolio investors (FPIs), consider the following statements:
1. Their investments typically include equities, bonds and mutual funds.
2. They are generally not active shareholders and do not exert any control over the companies whose shares they hold.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to the Foreign portfolio investors (FPIs), consider the...
Foreign portfolio investors (FPIs) have been on a selling spree in India. May figures of about ₹44,000 crore formed the highest monthly quantum of sell-off since March 2020 when India announced a nationwide lockdown.
  • Foreign portfolio investors are those that invest funds in markets outside of their home turf.
  • Their investments typically include equities, bonds and mutual funds.
  • They are generally not active shareholders and do not exert any control over the companies whose shares they hold. The passive nature of their investment also allows them to enter or exit a stock at will and with ease.
  • Promise of attractive returns on the back of economic growth draws investors including FPIs into a country’s markets.
What impact does an FPI sell-off have?
  • When FPIs sell their holdings and repatriate funds back to their home markets, the local currency takes a beating. As supply of the rupee in the market rises, its value declines.
  • Their selling actions have triggered a significant decline in benchmark indices resulting in a drop in market capitalisation of companies.
Hence both statements are correct.
Explore Courses for UPSC exam

Similar UPSC Doubts

Top Courses for UPSC

With reference to the Foreign portfolio investors (FPIs), consider the following statements:1. Their investments typically include equities, bonds and mutual funds.2. They are generally not active shareholders and do not exert any control over the companies whose shares they hold.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
Question Description
With reference to the Foreign portfolio investors (FPIs), consider the following statements:1. Their investments typically include equities, bonds and mutual funds.2. They are generally not active shareholders and do not exert any control over the companies whose shares they hold.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the Foreign portfolio investors (FPIs), consider the following statements:1. Their investments typically include equities, bonds and mutual funds.2. They are generally not active shareholders and do not exert any control over the companies whose shares they hold.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Foreign portfolio investors (FPIs), consider the following statements:1. Their investments typically include equities, bonds and mutual funds.2. They are generally not active shareholders and do not exert any control over the companies whose shares they hold.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
Solutions for With reference to the Foreign portfolio investors (FPIs), consider the following statements:1. Their investments typically include equities, bonds and mutual funds.2. They are generally not active shareholders and do not exert any control over the companies whose shares they hold.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of With reference to the Foreign portfolio investors (FPIs), consider the following statements:1. Their investments typically include equities, bonds and mutual funds.2. They are generally not active shareholders and do not exert any control over the companies whose shares they hold.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of With reference to the Foreign portfolio investors (FPIs), consider the following statements:1. Their investments typically include equities, bonds and mutual funds.2. They are generally not active shareholders and do not exert any control over the companies whose shares they hold.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?, a detailed solution for With reference to the Foreign portfolio investors (FPIs), consider the following statements:1. Their investments typically include equities, bonds and mutual funds.2. They are generally not active shareholders and do not exert any control over the companies whose shares they hold.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of With reference to the Foreign portfolio investors (FPIs), consider the following statements:1. Their investments typically include equities, bonds and mutual funds.2. They are generally not active shareholders and do not exert any control over the companies whose shares they hold.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice With reference to the Foreign portfolio investors (FPIs), consider the following statements:1. Their investments typically include equities, bonds and mutual funds.2. They are generally not active shareholders and do not exert any control over the companies whose shares they hold.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev