Hindu Live Desk: after foreign direct investment (FDI), the government is now looking to claim down unbridled excess of Chinese portfolio investor into the Indian market is it seeks to plug a possible look falldate investor from across the border can use to acquire shares in listed domestic companies.
the department of economic affairs in the finance ministry is looking to option, including the possibility of mandating the “approval route” for Chinese foreign portfolio investment (FPI) as well. FPI investor typically acquire smaller shares and keep churning their investment. The government initiate the steps in consultation with market regulator SEBI.
in contrast FDI is a more long term and table source of funding which the government had recently blocked the Chinese investors through The automatic route and mandated that direct investment for countries that share a border with India will only be premitted with prior approval comment approval.