India's Foreign Portfolio Investment Policy: A Roadmap For Global Competitiveness
- IJLLR Journal
- Apr 9, 2025
- 1 min read
Rupanjana Bal, Amity University Kolkata
Atiya Farhin, Amity University Kolkata
ABSTRACT
The Foreign Portfolio Investment (FPI) framework is essential for the Capital market growth and to attract foreign investors. However, it continues to face challenges such as regulatory complications, excessive tax burden, restricted market access, and inadequate dispute resolution mechanisms. This paper evaluates the legal and regulatory complications faced by FPIs in India and proposes suggestions drawn from global best practices from countries like the USA, Luxembourg, Australia, and Singapore. The paper suggests reforms such as streamlined onboarding process, reduced capital gain tax, and improved data protection mechanism, which can enhance India’s global competitiveness by fostering foreign investors’ confidence and attracting foreign capital.
Keywords: Foreign Portfolio Investment (FPI), Regulatory Framework, SEBI, RBI, KYC, Capital Gains Tax, Dispute Resolution, Market Access.
