FPI outflow: ₹35,861 crore pulled from Indian equities in September
Why in the news
Depository data released in early October 2026 showed that foreign portfolio investors (FPIs) were net sellers of Indian equities in September, ending a two-month run of inflows.
Key facts
- Net equity outflow: ₹35,861 crore in September 2026.
- Secondary market: FPIs sold ₹45,537 crore of shares through stock exchanges.
- Primary market: they invested ₹9,676 crore, which partly offset the selling.
- Trend reversal: net flows were positive in both July and August.
- Reasons cited: geopolitical uncertainty, high US bond yields and crude oil prices, which reduced investors’ appetite for risk.
Debt market outflows (September 2026)
| Route | Outflow |
|---|---|
| Fully Accessible Route (FAR) | ₹10,431 crore |
| General limit | ₹5,247 crore |
| Voluntary Retention Route (VRR) | ₹5,049 crore |
About FAR and VRR
- FAR: introduced by the RBI on 30 March 2020 (effective 1 April 2020); it lets non-residents, including FPIs, buy specified Government of India dated securities without any quantitative ceiling.
- VRR: an RBI scheme finalised on 1 March 2019 to encourage long-term FPI investment in Indian debt; investors must keep at least 75% of their allotted amount in India for a minimum retention period of three years.
Exam angle
- September 2026 net FPI equity outflow: ₹35,861 crore.
- Know the three FPI debt routes: general limit (Medium Term Framework), VRR and FAR.
- FAR covers only specified central government securities and has no investment cap.