FPIs had been net investors in the equity segment in the previous five months.
Investors are threatening to pull funds from India unless rules are amended so that they won’t take a tax hit.
FPIs pulled out money from equity markets for five of the six sessions following the Budget, which was presented on July 5.
FPIs get covered by higher tax rate as they have been investing as a non-corporate entity such as trust or association of persons.
FM Sitharaman proposed to increase surcharge from 15 pc to 25 pc on taxable income between Rs 2 cr and Rs 5 cr.
Increase surcharge from 15 pc to 25 pc on taxable income between Rs 2-5 cr, and from 15 pc to 37 pc for income above Rs 5 cr.
As per latest data, FPIs withdrew amount of Rs 3,710.21 crore from equities but invested Rs 3,234.65 crore in the debt.
Finance Minister Nirmala Sitharaman in the Budget for 2019-20 proposed easing KYC norms for foreign portfolio investors.
So far in 2019, the FPIs have invested a net cumulative amount of Rs 87,313.22 crore since January, the data showed.