Fii Is Better Than Fdi

FII is Better than FDI

How Investment Flows In India F DIs

FIIs

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