SEBI Chairman Tuhin Kanta Pandey said Foreign Portfolio Investment share in the domestic market has fallen to some extent, but FPI still holds a large chunk in listed companies. Speaking at the IMC Capital Market Conference 2026 on Monday, Pandey said current geopolitical tensions remind market does not function in isolation from the world.
Notably, Indian equities have been seeing record outflow in previous months. Persistent selling by FIIs has continued to weigh on the market, as global investors trimmed their exposure to Indian equities amid elevated uncertainty and risk aversion.
Data from exchanges showed foreign portfolio investors continued their heavy selling streak, pulling out Rs 8,047.86 crore from Indian equities on May 4, 2026, as per exchange data. FPI sell orders worth Rs 23,097.41 crore far exceeded their purchases of Rs 15,049.55 crore, marking a sharp net outflow that has added to the sustained pressure on the markets.
In contrast, domestic institutional investors stepped in as stabilising buyers, recording a strong net inflow of Rs 3,487.10 crore on the same day, with total purchases of Rs 18,252.89 crore against sales of Rs 14,765.79 crore. The persistent FPI withdrawal amid global uncertainty has been a key factor amplifying volatility and deepening.
Pandey also noted that for India to mobilise domestic and international funds is important. he further added that the markets are changing fast, with both investors and risks are evolving.
Pandey emphasised that striking the right regulatory balance is crucial, noting that both under-regulation and excessive regulation can undermine market trust. He indicated that SEBI is preparing to roll out a risk assessment advisory to address vulnerabilities arising from the growing use of artificial intelligence.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
