What is Foreign Institutional Investor (FII)?
Historical Background
Key Points
8 points- 1.
FIIs are regulated by the Securities and Exchange Board of India (SEBI).
- 2.
FIIs invest in stocks, bonds, and other financial instruments.
- 3.
FII flows can be volatile and are influenced by factors such as global interest rates, economic growth prospects, and risk appetite.
- 4.
Large FII outflows can lead to a decline in stock prices and depreciation of the rupee.
- 5.
FII investments are subject to capital gains tax.
- 6.
FIIs play a significant role in the development of the Indian capital market.
- 7.
SEBI has simplified the registration process for FIIs to attract more investment.
- 8.
FIIs are different from Foreign Direct Investors (FDIs), who make long-term investments in businesses.
Visual Insights
Foreign Institutional Investor (FII) - Key Concepts
Mind map illustrating the key aspects of Foreign Institutional Investor (FII) relevant for UPSC exam.
Foreign Institutional Investor (FII)
- ●Regulation
- ●Investment Instruments
- ●Factors Affecting FII Flows
- ●Impact on Economy
Recent Developments
5 developmentsSEBI has been taking steps to promote FII investment in the Indian market.
Increased focus on attracting FII investment in debt markets.
Concerns about the impact of global interest rate hikes on FII flows to India.
Growing interest from FIIs in the Indian stock market due to its strong growth potential.
Efforts to improve market infrastructure and transparency to attract more FII investment.