Net settlement of funds for FPI outright cash market trades allowed to reduce funding costs and improve efficiency. Net settlement of funds is permitted for outright transactions undertaken by Foreign Portfolio Investors in the cash market to improve operational efficiency and reduce funding costs. Only transactions involving either a purchase or a sale in a security during a settlement cycle are eligible for netting; transactions involving both purchase and sale in the same cycle remain subject to gross settlement. Settlement of securities between the FPI and the custodian continues on a gross basis, and Securities Transaction Tax and stamp duty continue to be levied on a delivery basis.