How India Can Stop Global Capital From Leaving Its Markets? In this episode of The Core Report Weekend Edition, Govindraj Ethiraj speaks with Ananth Narayan Gopalakrishnan, Former Whole Time Member of SEBI, to decode the real reasons behind capital flight from India, rising FPI/FII outflows, and what reforms could make India’s capital markets more globally competitive. India’s growth story remains strong. Domestic mutual fund inflows are at record highs. Retail investor participation has exploded from 4 crore to over 14 crore investors. Yet foreign portfolio investors have been pulling money out. Why? Is it valuations? Tax policy? Market structure? Global geopolitics? Or friction in how foreign capital enters and exits India? In this deep, data-backed conversation, we explore: • The demand–supply mismatch in Indian equity markets • Record domestic mutual fund flows vs IPO supply • Why valuation pockets may discourage foreign investors • The role of derivatives and index options in market liquidity • Retail trading losses and financial stability concerns • Capital gains tax and whether India should adopt residence-based taxation • How tax neutrality across asset classes could rebalance capital allocation • Should India allow more outward investments to reduce valuation pressure? • What SEBI can do to reduce friction for global institutional investors For professionals in finance, consulting, investing, startups, or policy, this episode provides a structural understanding of India capital markets, foreign portfolio investment trends, and the future of global capital flows into India. If you track FII selling, FPI data, Nifty, Sensex, SEBI reforms, mutual fund flows, IPO markets, bond markets, or India’s economic policy, this conversation connects the dots. India is not short of capital — but is it structured correctly? Are we making it easy for global capital to stay? And what changes could unlock the next decade of sustainable market growth? Watch till the end for a powerful framework on how India can balance domestic investor growth with long-term global capital participation. If you found this valuable, share it with colleagues in finance, investment, consulting, and policy. Subscribe for sharp conversations on markets, regulation, and the future of India’s economy. #IndiaStockMarket #CapitalFlows #SEBI #FII #IndianEconomy #TheCoreReport #TheCore
