New Delhi, Oct. 3 -- Foreign portfolio investors (FPIs) returned to selling Indian equities in September after two consecutive months of inflows, highlighting a problem that goes beyond the ease of entering the Indian market.

While the Securities and Exchange Board of India (SEBI) has been working with the Reserve Bank of India (RBI) to simplify onboarding and reduce regulatory friction, foreign investors continue to weigh India against competing markets on the basis of returns, yields, currency and global risk.

FPIs withdrew Rs.35,860 crore from Indian equities in September, according to depository data reported after the close of the month. This came after they invested Rs.20,200 crore in July and Rs.29,630 crore in August, marking a ...