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Answer

Correct Option is 2 and 3 Only

FPI consists of securities and other financial assets passively held by foreign investors. It does not provide investor with direct ownership of financial assets. In India, FPIs are allowed to invest in various debt market instruments such as government bonds, treasury bills, state development loans (SDLs) and corporate bonds, but with certain restrictions and limits. FPI is part of country’s capital account and shown on its balance of payments (BOP). FPI is more liquid and less risky than FDI.

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