Russian investors flocking to Indian capital mkts now

Challenging Greenback Weaponization

- US, EU imposed sanctions against Russia in Feb 2022

- Russia exploring alternatives to the dollar as reserve currency

- 16 China-based, 217 Hong Kong-based and 124 Taiwan-based FPIs in India

- 10 countries account for 83% of Rs50.85 lakh-cr FPI assets

New Delhi: Russian investors are flocking to Indian capital markets with three entities in Russia having registered with Sebi as foreign portfolio investors (FPIs) amid sanctions imposed on the nation in response to the war against Ukraine.

All the three investors which obtained FPI licence from Sebi are based in Moscow. Alfa Capital Management Company is registered in both category-1 and category II. Besides, one individual Vsevolod Rozanov has been registered in category-1, latest data with the National Securities Depositories showed. Further, the licence issued to them is valid for three years till early 2026, it added.

This could be the first instance when Russian investors have opted for the FPI route to invest in India. Before this, they mostly took the foreign direct investment (FDI) route. Experts believe that Russian investors are exploring Indian markets in the wake of sanctions imposed on the country by the US and European Union following Russia’s invasion of Ukraine in February 2022.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “The sanctions imposed on Russia, particularly the weaponization of the dollar, has led to new economic and financial developments.”