The total value of investments via P-notes in the Indian markets declined by Rs 7,103 crore to Rs 69,670 at Nov-end.
According to the depositories data, foreign investors pulled out a net sum of Rs 1,668.8 crore from equities.
RBI Governor Shaktikanta Das has already hinted further monetary policy easing while space for fiscal space is limited.
The six-member MPC is scheduled to announce the fourth bi-monthly monetary policy for 2019-20 on Friday, October 4.
The new FPI regulations would come into force with immediate effect, the Sebi said in a notification issued on Monday.
Markets will witness a revival as the newly announced fiscal measures will give a relief from slowdown fears
The Centre on Friday slashed corporate tax rates by around 10 pc and said enhanced tax surcharge will not to apply on capital gains.
According to experts, stock-specific sell-off in index heavyweights dragged key indices lower.
The blue print for the stimulus is ready that would be announced by FM Nirmala Sitharaman in the next few days, an official said.
The latest inflows have been triggered by improving investor sentiment on the back of easing US China trade war.