FPI and Portfolio Investment — Prelims Strategy

Prelims Strategy

Focus on memorizing key numerical thresholds (10% FPI-FDI distinction), regulatory authorities (SEBI for FPI, DPIIT for FDI), and recent policy changes. Master the three-tier FPI categorization with specific examples for each category.

Understand sectoral caps for major sectors like banking, insurance, and defense. Practice questions on P-Notes regulations, particularly prohibited practices and disclosure requirements. Create comparison charts for FPI vs FDI across multiple parameters.

Stay updated on recent regulatory changes and their effective dates. Use elimination techniques by identifying obviously wrong options first, particularly in questions mixing FPI and FDI characteristics.