FPI stands for Foreign Portfolio Investor. It refers to an investor or an investment fund that is based outside of the country but invests in the financial markets of another country. FPIs typically invest in stocks, bonds, and other securities of the target country. They play a significant role in global capital flows and can have a significant impact on the financial markets and economies of the countries in which they invest. FPIs are subject to specific regulations and guidelines set by the regulatory authorities of the target country to ensure transparency and stability in the financial markets.