India-Canada tensions: FPIs from North American country are among largest investors in India 

The political and diplomatic tensions between Canada and India may well be on the rise with India suspending visa services to Canadians but it is worth noting that Canada remains one of the biggest players in the Indian capital markets. 

Canada features among the top 10 countries in terms of assets held by the foreign portfolio participants or FPIs. 

Data from the National Securities Depository Limited (NSDL) shows that the cumulative assets under custody (AUC) held by FPIs originating from Canada is pegged at Rs 1.77 lakh crore with over 85 per cent of the assets or nearly Rs 1.51 lakh crore invested in equities. 

While Canada is the seventh-largest FPI in India in terms of the total assets under management, it occupies the third slot when it comes to the number of FPIs coming from the country. 

There are as many as 818 registered FPIs with Canada origins—next only to USA’s 3,473 and 1,368 from Luxembourg—as per data from NSDL. 

This assumes significance as some of the FPIs from Canada are known to be large players in the universe of overseas investors.  

For instance, Canada Pension Plan Investment Board is a large shareholder – holding more than one per cent at least—in companies like Delhivery, Indus Towers, Kotak Mahindra Bank, One97 Communications (Paytm), FSN Ecommerce (Nykaa) and Zomato, as per data from Screener. 

Interestingly, market participants do not expect any significant impact on the investment front due to the ongoing diplomatic tensions between the two countries. 

Incidentally, Canada Pension Plan Investment Board has increased its stake in new-age and digital companies like Nykaa, Paytm and Zomato over the last few quarters. 

Meanwhile, in terms of the largest countries in terms of assets held by FPIs, USA heads the list with assets worth Rs 22.7 lakh crore followed by Singapore (Rs 5.24 lakh crore), Luxembourg (Rs 4.23 lakh crore), Mauritius (Rs 3.73 lakh crore), Ireland (Rs 2.92 lakh crore), and United Kingdom (Rs 2.89 lakh crore) followed by Canada. 

The top 10 list of countries is completed by Norway, France and Japan.

Also Read: India suspends visa services to Canadians applying from foreign countries

Also Read: Canada high commission in India to 'temporarily adjust staff presence' after alleged threat to diplomats