However, the big shocker was the levying of surcharge on foreign portfolio investors (FPIs), which resulted in several savvy investors pulling out of Indian markets. As of now Sebi’s primary markets committee has failed to come to a consensus and Sebi has communicated its reservations to the finance ministry. “It is time to take our capital markets closer to the masses and meet various social welfare objectives related to inclusive growth and financial inclusion," said Sitharaman. As a result, FPIs were net sellers of Indian equities during the July-September quarter and withdrew ₹22,463 crore from Indian capital markets during the period. It was only after a roll back was announced did the FPIs turned net buyers during the year, resulting in markets touching new highs.

Source: Mint January 26, 2020 06:33 UTC