FII is Better than

FDI
How Investment Flows In
India

F
FIIs
DIs
Meaning
FII
Foreign Institutional Investor means “an
institution established or incorporated outside
India which proposes to make investment in
India in securities
 Where FII can invest?

Current financial instruments are available for FII

investments
Securities in primary and secondary markets including
shares, debentures and warrants of companies, unlisted,
listed or to be listed on a recognized stock exchange in
India;
Units of mutual funds;
Dated Government Securities;
Derivatives traded on a recognized stock exchange ;
Commercial papers
Why there is need of FII ?
FII flows supplements and augmented
domestic savings and domestic investment
without increasing the foreign debt of our
country
Capital inflows to the equity market increase
stock prices, lower the cost of equity capital
and encourage the investment by Indian firms
The expert group opines that FII inflows have
some savings like features
FDI
FDI is the process where by resident of one
country (the home country) acquires
ownership of assets for the purpose of
controlling the production, distribution and
other activities of a firm in another country
(the host country).
FDI in major sectors in
India
Financial sector (banking and non-banking).
Insurance
Telecommunication
Hospitality and tourism
Pharmaceuticals
Software and Information Technology.
Advantages of FDI
Increased capital flow.
Improved technology.
Management expertise.
Access to international markets.
Inside into FII and FDI