'Don't Link FPI Outflows To Regulation': SEBI Chief Flags Structural Constraints

In light of fluctuating foreign portfolio investment (FPI) trends, SEBI Chief Ajay Tyagi has emphasized that recent outflows from India should not be hastily linked to regulatory measures. His comments come as global investors are increasingly selective in their capital allocations toward emerging markets, with India experiencing periodic capital outflows, while some of its peers continue to attract stable inflows. Tyagi acknowledged the structural constraints faced by the Indian market but urged stakeholders to consider broader global economic factors affecting investor sentiment. The Indian market has shown resilience, yet it is crucial to understand the underlying dynamics at play, including geopolitical tensions and varying economic recoveries across nations. By focusing on enhancing market structures and investor confidence, India aims to position itself as an attractive destination for foreign investments in the long run.