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Q.

What is fdi and fii?

Tags: fdi, fii
01 Mar '07 08:26 pm
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Answers (4)

1.

Foreign direct investment (FDI) is defined as a long-term investment by a foreign direct investor in an enterprise resident in an economy other than that in which the foreign direct investor is based. The FDI relationship, consists of a parent enterprise and a foreign affiliate which together form a transnational corporation (TNC). In order to qualify as FDI the investment must afford the parent enterprise control over its foreign affiliate. The UN defines control in this case as owning 10% or more of the ordinary shares or voting power of an incorporated firm or its equivalent for an unincorporated firm.
Foreign Institutional Investor (FII) is an investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.
Answered by koshy john, 01 Mar '07 08:34 pm

 
  
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2.

FDI is Foreign Direct Investment. It is the investment made by an Overseas entity normally in the form of subscribing to the Share market of an Indian Company. The foreign investor may directly involve himself into the running of the company. The upper limit for an FDI is fixed by the Union Government and ranges from 26% to 100%.

FII means Foreign Institutional Investor. These investors are basically foreign banks or financial institutes. They normally invest through equity market on the stock exchange. The upper ceiling for this tyoe of investment is limited to a maximum of 5%.
Answered by Anthony Vaz, 01 Mar '07 11:49 pm

 
  
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3.

Foreign direct investment and Foreign Institutional Investor
Answered by sumit goyal, 01 Mar '07 08:35 pm

 
  
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4.

FDI stands for Foreign Direct Investment.It refers to the money invested in the Indian market by overseas investors in India's different sectors.The Government has policies where it controls the percentage of investment by the Foreign investor.
Examples are the Bharti Walmart venture (Retail sector)
FII stands for Foreign Institutional Investors.They refer to Corporate or Government Houses from foreign countries and who invest in India's Capital market.FII's and FDI plays a key role in increasing India's Foreign exchange reserves.
Answered by Suganth M, 01 Mar '07 08:40 pm

 
  
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