Page 518 - ES 2020-21_Volume-1-2 [28-01-21]

Monetary Management and Financial Intermediation 145

Table 9: Primary Market Resource Mobilization through Debt Issues

2019-20 (upto December) 2020-21 (upto December)

Issue Type Amount Amount
No. of Issues (` crore) No. of Issues (` crore)

Public Issue (Debt) 27 11,746.11 10 3,871.70

Private Placement (Debt) 1295 4,49,939.71 1540 5,95,044.66

Total Debt Issue 1322 4,61,685.82 1550 5,98,916.36

Source: BSE, NSE and SEBI

4.45 Bilateral Netting of Qualified Financial Contracts Bill was passed and has become
operational since October 1, 2020. Prior to this legislation, India did not have a legal
framework for bilateral netting. Netting enables two counter parties in a bilateral financial
contract to offset claims against each other to determine a single net payment obligation due
from one counter party to others. Besides aiding the stability of the financial markets, bilateral
netting will help in development of corporate debt market in India and freeing the capital in
the system.

3. Mutual Fund Activities
4.46 There was a net inflow of ` 2.76 lakh crore into the mutual funds industry during 2020-21
(upto December), as compared to a net inflow of ` 1.82 lakh crore in the corresponding period
of last year. The net assets under management of all mutual funds increased by 16.9 per cent
to ` 31.02 lakh crore at the end of December 31, 2020 from ` 26.54 lakh crore at the end of
December 31, 2019 (Table 11).

Table 10: Mobilisation of Funds by Mutual Funds (Amount in ` lakh Crore)

No. of Folios Gross Net AUM at the
Period Redemption Net Inflows
(crore) Mobilization end of the period

2019-20# 8.71 154.67 152.85 1.82 26.54

2020-21# 9.43 65.47 62.71 2.76 31.02

Source: SEBI
Note: #Upto December 31 of respective years

INVESTMENT BY FOREIGN PORTFOLIO INVESTORS
4.47 There were net inflows to the tune of ` 2.1 lakh crore on account of the foreign portfolio
investors (FPIs) in the Indian capital market during 2020-21 (up to December), as compared
to net inflows of ` 0.81 lakh crore during the same period in 2019-20. The total cumulative
investment by FPIs (at the acquisition cost) increased by 5.4 per cent to US$ 273.6 billion as on
December 31, 2020 from US$ 259.5 billion as on December 31, 2019.