The Coordinated Portfolio Investment Survey (CPIS) in India, updated as of June 3, 2024, serves as a vital mechanism for gathering portfolio investment statistics under the purview of the International Monetary Fund (IMF). Since 2004, India has voluntarily participated in this survey, transitioning to semi-annual reporting in 2014 in accordance with IMF’s recommendation under the G-20 Data Gaps Initiative. Managed by the Reserve Bank of India (RBI), CPIS data submission is mandatory for banks, mutual fund companies, non-financial companies, non-banking financial companies, and insurance companies. This semi-annual survey captures the end-March and end-September positions of the latest financial year. Entities are notified via email by RBI, and they’re required to fill and submit survey schedules promptly. The CPIS aims to collect information on portfolio investment assets of domestic residents in securities issued by unrelated non-residents, categorized into equity and debt securities. Confidentiality is maintained, with only aggregated data submitted to the IMF. Notably, equity securities are reported at market prices, while debt securities are recorded at market prices converted to domestic currency. Detailed instructions and definitions ensure accurate reporting, with avenues for queries available through RBI’s International Investment Position Division.
Coordinated Portfolio Investment Survey – India
(Updated as on June 03, 2024)
General Information
The Coordinated Portfolio Investment Survey (CPIS) is a voluntary data collection exercise conducted under the auspices of the International Monetary Fund (IMF). The purpose of the CPIS is to improve the quality of portfolio investment statistics in the international investment position (IIP) — that is, holdings of portfolio investment assets in the form of equity and investment fund shares, long-term debt securities, and short-term debt securities — and the availability of these statistics by counterpart economies. Therefore, the CPIS supports the objective of developing from-whom-to-whom cross-border data and contributes to a better understanding of financial interconnectedness.
India began participating in annual CPIS of the IMF since 2004. Thereafter, as per IMF’s recommendation under G-20 Data Gaps Initiative (DGI), India moved to semi-annual reporting of CPIS in 2014, as per India’s commitment under Special Data Dissemination Standards (SDDS). The Reserve Bank of India submits the CPIS data to IMF on behalf of India.
Confidentiality Clause
The entity-wise information collected under the CPIS are kept confidential and only consolidated aggregates are submitted by the Reserve Bank of India to IMF.
Eligible entities and requirements to report under CPIS
Q.1 Which entities are eligible to report under CPIS?
Ans: Presently the banks, mutual fund companies, non-financial companies, non-banking financial companies and insurance companies are surveyed under the CPIS.
Q.2 What is the frequency of the survey?
Ans: Presently, the survey is conducted half-yearly in India for capturing the end-March and end-September position of the latest financial year (FY).
Q.3 Should AIFs report under CPIS?
Ans: Yes, since AIFs are considered under non-banking financial institutions.
Details for survey launch
Q.4 How do I know that the survey is launched?
Ans: The Reserve Bank will send emails to all the eligible entities from generic email IDs of the Reserve Bank to notify them about the launch of the CPIS for the latest reference period. Entities are required to fill in the latest survey schedule attached along with the mail and send to the generic email IDs of the Reserve Bank as per the instruction given in the survey schedule.
Q.5 How do I know whether my response has been submitted successfully or not?
Ans: After sending the duly filled in survey schedule (excel based) to the generic email IDs of the Reserve Bank as per the instruction in the survey schedule, the respondent will receive the system-generated acknowledgement. No separate mail will be sent in this regard. If some error is mentioned in the acknowledgement, then the respondent is required to resubmit the form by rectifying the mentioned error. After corrections, the respondent should receive a successful processing acknowledgement email.
Q.6 What is the launch timeline of the CPIS?
Ans: The CPIS is conducted by the Reserve Bank half yearly to collect the required details of the reporting entities as on end-March and end-September of a FY. In general, the survey is launched for end-March and end-September position on June 01 and December 01 of that year respectively.
Q.7 What is the due date for participating in CPIS?
Ans: In general, the due date for participating in CPIS for end-March and end-September position is July 15 and December 31 of that year respectively.
Q.8 What if the reporting entity does not receive the soft copy of the survey schedule by email?
Ans: In case the reporting entity does not receive the soft-form of the survey schedule, they may download the same from RBI website (www.rbi.org.in) under the head ‘Regulatory Reporting’-→ ‘List of Returns’-→ ‘CPIS – Survey Schedule’ [or under the head ‘Forms’ (available under ‘More Links’ at the bottom of the home page) and sub-head ‘Survey’] or send a request to the email.
Important points to remember while participating in CPIS
Q.9 What are the points the reporting entities should remember while filling the survey schedule?
Ans: The reporting entities should follow the below-mentioned points for filling and submitting the survey schedule:
i. The company must use the latest survey schedule, which is in .xls format, without incorporating any macros.
ii. The company is required to save the survey schedule in Excel 97-2003 workbook, i.e., in .xls format by following the below-mentioned steps:
a. Go to Office Button / File → Save As → Save As type
b. Select “Excel 97-2003 Workbook” and Save the survey schedule in .xls format.
iii. The company is requested not to incorporate any macro in the survey schedule while submitting the same.
iv. Survey schedule submitted in any other format (other than .xls format) will be rejected by the system.
v. Ensure that all information furnished in the survey schedule are complete and no information is missed out.
vi. After filling required details, the responding entities have to fill the declaration present in the survey schedule, which helps in validating that the information entered by the entity are reconfirmed before submission to RBI. This helps to avoid data entry errors, missed data and other errors.
What to report under CPIS?
Q.10 Should we report data for a particular branch of the reporting entity or the consolidated data of the entity?
Ans: A consolidated data at the entity level, covering all the branches/offices in India, should be furnished.
Q.11 What information should be reported under CPIS?
Ans: The survey collects details of portfolio investment assets of domestic residents made in securities issued by unrelated non-residents i.e., securities issued by unrelated non-residents and owned by residents.
Q.12 At what value should the portfolio investment assets be reported?
Ans: The portfolio investment assets are required to be reported on marked to market basis as at the end of the reference period, with the breakups into type of securities viz., equity securities, short-term debt securities (with and original maturity of up to one year) and long-term debt securities (with an original maturity of more than a year) and country of residence of issuer.
Q.13 What is the unit of reporting the data in CPIS?
Ans: Reporting entities should report the data in the unit mentioned in the survey schedule (for eg., INR Lakh).
Q.14 If the responding entity does not have any portfolio investment assets during the reference period, do they need to participate in the survey?
Ans.: If the responding entity does not have any portfolio investment asset during the reference period, then that entity is required to submit NIL survey schedule to the generic email ID of the Reserve Bank as per the instruction in the survey schedule.
Q.15 What information should be reported in the CPIS, if balance sheet of the entity is not audited before the due date of submission?
Ans.: If the entity’s accounts are not audited before the due date of submission, then they should report in the survey based on unaudited (provisional) account.
Some important definitions and concepts
Q.16 What to report in equity securities?
Ans: Equity consists of all instruments and records that acknowledge claims on the residual value of a corporation or quasi-corporation, after the claims of all creditors have been met. Equity may be split into listed shares, unlisted shares, and other equity. Both listed and unlisted shares are equity securities. Equity securities are commonly called shares or stocks. Other equity is equity that is not in the form of securities.
Q.17 What should be considered under equity securities?
Ans: The following are included under equity securities:
- Ordinary shares.
- Stocks.
- Participating preference shares.
- Shares/units in mutual funds and investment trusts
- Depository receipts (e.g., American Depository Receipts) denoting ownership of equity securities issued by non-residents.
- Securities sold under repos or “lent” under securities lending arrangements.
- Securities acquired under reverse repos or securities borrowing arrangements and subsequently sold to a third party should be reported as a negative holding.
Q.18 What should not be included under equity securities?
Ans: The following are not included under equity securities:
- Equity securities issued by a nonresident enterprise that is related to the resident owner of those securities should be excluded from this survey.
- Non-participating preference shares.
- Securities acquired under reverse repos.
- Securities acquired under borrowing arrangements.
Q.19 What to report in debt securities?
Ans: Debt securities are negotiable instruments serving as evidence of a debt. They include bills, bonds, notes, negotiable certificates of deposit, commercial paper, debentures, asset-backed securities, money market instruments, and similar instruments normally traded in the financial markets.
Q.20 What are long-term debt securities?
Ans: Debt securities with original maturity of more than one year is classified as long-term debt securities. These include bonds, debentures, and notes that usually give the holder the unconditional right to a fixed cash flow or contractually determined variable money income.
Q.21 What are short-term debt securities?
Ans: Debt securities with original maturity of one year or less is classified as short-term debt securities. Examples of short-term securities are treasury bills, negotiable certificates of deposit, bankers’ acceptances, promissory notes, and commercial paper.
Q.22 At what value should we report the securities – face value or market value?
Ans: Equity securities should be reported at market prices converted to domestic currency using the exchange rate prevailing at March 31/ September 30, [Year]. For enterprises listed on a stock exchange, the market value of your holding of the equity securities should be calculated using the market price on the main stock exchange prevailing at March 31/ September 30, [Year]. For unlisted enterprises, if a market value is not available at the close of business on March 31/ September 30, [Year], estimate of the market value of your holding of equity securities can be calculated by using one of the six alternatives methods given in Q23.
Debt securities should be recorded at market prices converted to domestic currency, using the exchange rate prevailing at the close of business on March 31/ September 30, [Year]. For listed debt securities, a quoted traded market price at the close of business on March 31/ September 30, [Year], should be used. When market prices are unavailable (e.g., in the case of unlisted debt securities), the following methods for estimating fair value (which is an approximation of the market value of such instruments) should be used:
- discounting future cash flows to the present value using a market rate of interest and
- using market prices of financial assets and liabilities that are similar.
Q.23 What is the method that can be used for approximating market prices for equity securities?
Ans: When actual market values are not available, an estimate is required. Alternative methods of approximating market value of shareholders’ equity in a direct investment enterprise include the following:
a. Recent transaction price: Unlisted instruments may trade from time to time, and recent prices, within the past year, at which they were traded may be used. Recent prices are a good indicator of current market values to the extent that conditions are unchanged. This method can be used as long as there has been no material change in the corporation’s position since the transaction date. Recent transaction prices become increasingly misleading as time passes and conditions change.
b. Net asset value: Appraisals of untraded equity may be conducted by knowledgeable management or directors of the enterprise or provided by independent auditors to obtain total assets at current value less total liabilities (excluding equity) at market value. Valuations should be recent (within the past year) and should preferably include intangible assets.
c. Present value and price-to-earnings ratios: The present value of unlisted equity can be estimated by discounting the forecast future profits. At its simplest, this method can be approximated by applying a market or industry price-to-earnings ratio to the (smoothed) recent past earnings of the unlisted enterprise to calculate a price. This method is most appropriate in which there is a paucity of balance sheet information but earnings data are more readily available.
d. Market capitalization method: Book values reported by enterprises can be adjusted at an aggregate level by the statistical compiler. For untraded equity, information on “own funds at book value” can be collected from enterprises, and then adjusted with ratios based on suitable price indicators, such as the ratio of market capitalization to book value for listed companies in the same economy with similar operations. Alternatively, assets that enterprises carry at cost (such as land, plant, equipment, and inventories) can be revalued to current period prices using suitable asset price indices.
e. Own funds at book value: This method for valuing equity uses the value of the enterprise recorded in the books of the direct investment enterprise, as the sum of (a) paid-up capital (excluding any shares on issue that the enterprise holds in itself and including share premium accounts); (b) all types of reserves identified as equity in the enterprise’s balance sheet (including investment grants when accounting guidelines consider them company reserves); (c) cumulated reinvested earnings; and (d) holding gains or losses included in own funds in the accounts, whether as revaluation reserves or profits or losses. The more frequent the revaluation of assets and liabilities, the closer the approximation to market values. Data that are not revalued for several years may be a poor reflection of market values.
f. Apportioning global value: The current market value of the global enterprise group can be based on the market price of its shares on the exchange on which its equity is traded, if it is a listed company. Where an appropriate indicator may be identified (e.g., sales, net income, assets, or employment), the global value may be apportioned to each economy in which it has direct investment enterprises, on the basis of that indicator, by making the assumption that the ratio of net market value to sales, net income, assets, or employment is a constant throughout the transnational enterprise group. (Each indicator could yield significantly different results from the others).
Contact Details for query related to CPIS
Q.24 Whom to contact in case of any query related to the CPIS?
Ans: Queries/clarifications on CPIS may be sought from the RBI at the following address:
International Investment Position Division (IIPD)
Department of Statistics and Information Management (DSIM)
Reserve Bank of India
C-9/5 th Floor, Bandra – Kurla Complex, Bandra East
Mumbai, Maharashtra – 400 051
Special instructions for banks
Q.25 Should portfolio investments assets made by branches of the banks outside India be included in CPIS?
Ans: No, investments made by branches of your bank located outside India should not be included in CPIS.
Q.26 Should portfolio investment assets made by branches of your bank located in IFSC zone of India to the rest of the world (i.e., excluding India) be included in CPIS?
Ans: Yes, it should be included.
Q.27 Should portfolio investment assets made by branches of your bank located in non IFSC zone of India to other branches located in IFSC zone be included in CPIS?
Ans: No, it should not be included, as it will be considered as resident to resident transaction.
(Republished with Amendments)
