FPIs prefer secondary market route to bet on Indian equities

FPIs invest in Indian equities through two channels. One, the stock exchange route or the secondary market where they buy equities at prices quoted on the stock exchange. The other method is investment through the primary market route where FPIs invest in companies through initial public offer or qualified institutional placement offer (QIP). The latter method is used to buy a large stake with a lower impact cost and without inflicting large volatility in stock prices.

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