FPI and Portfolio Investment — Mains Questions

Analyze the role of Foreign Portfolio Investment (FPI) in India's capital market development and examine the challenges posed by FPI volatility to macroeconomic stability.

Evaluate the effectiveness of SEBI's three-tier FPI categorization system introduced in 2019 in balancing market access with regulatory oversight.

Discuss the economic implications of Participatory Notes (P-Notes) in India's FPI framework and evaluate the regulatory measures taken to address associated concerns.