Besides, sub-categories under the category of corporate bonds were discontinued resulting in a single limit for FPI investment in all types of corporate bonds, as per the report.
The limit for FPI investment in debt was revised from Rs 6.49 lakh crore to over Rs 6.98 lakh crore for the April 2019-September 2019 and more than Rs 7.46 lakh crore for October 2019-March 2020, it noted.
To address concerns over data privacy, a provision similar to One Time Password (OTP) was introduced, wherein, an intermediary can access information related to beneficial owner, including senior managing official of an FPI only after confirmation from the FPI or its global custodian.
Additionally, measures like relaxation of eligibility norms for FPIs, monitoring of foreign investment limits, easing the process of on-boarding of FPIs were taken.
"Sustained capital inflows play a major role for any economy and in particular for emerging markets as these markets get influenced more by global than domestic forces.
"Despite heavy capital infusion by FPIs in last two months, the Indian capital market suffered a net outflow to the tune of Rs 38,930 crore in 2018-19 as macroeconomic headwinds weighed on investor sentiment through the year," the report said.
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