Consider the following statements regarding 'Foreign Portfolio Investment' (FPI) in India: 1. FPIs are allowed to invest in unlisted shares of Indian companies. 2. FPIs can invest in Treasury Bills issued by the Government of India. Which of the statements given above is/are correct?
A
1 only
B
2 only
Correct Answer
C
Both 1 and 2
D
Neither 1 nor 2
Explanation
Foreign Portfolio Investors (FPIs) primarily invest in listed securities and are generally not permitted to invest in unlisted shares of Indian companies, which falls under Foreign Direct Investment (FDI). However, FPIs are permitted by the RBI to invest in government securities, including Treasury Bills.
Foreign InvestmentForeign Portfolio Investment (FPI)Foreign Portfolio InvestmentFPIUnlisted sharesTreasury BillsSEBI regulations