Question:
“As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth ₹ 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 – 9th June, 2023.” The above-mentioned transactions will be recorded on ______ side of ______ account of Balance of Payments of India.
“As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth ₹ 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 – 9th June, 2023.” The above-mentioned transactions will be recorded on ______ side of ______ account of Balance of Payments of India.
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In BoP, capital account entries reflect financial flows like foreign investments, loans, or asset sales, with outflows recorded as debits.
Updated On: Jan 13, 2026
- Debit, Current
- Credit, Capital
- Credit, Current
- Debit, Capital
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The Correct Option is D
Solution and Explanation
The Balance of Payments (BoP) records all financial transactions between residents of a country and the rest of the world. Net selling by FIIs reflects an outflow of foreign capital due to the sale of securities, and this is recorded as a debit entry in the capital account of the BoP.
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