Foreign Institutional Investor (FII) - Important Points, Short Notes about FII

Foreign Institutional Investor (FII) Important Points. Short Notes on Foreign Institutional Investor (FII). Question and Important Points about FII.

Short Note on Foreign Institutional Investor (FII):
Foreign Institutional Investor (FII) means “an institution established or incorporated outside India which proposes to make investment in India in securities, real property and other investment assets”. In India Foreign Institutional Investor (FII) refers to outside companies investing in the Indian Financial Markets.

India opened its stock market to Foreign Institutional Investors (FII) in September 1992. Since 1993, India received portfolio investment from foreigners in the form of Foreign Institutional Investment (FII) in equities.

In order to trade in Indian equity market, all Foreign Institutional Investors (FII) must register with the Securities and Exchange Board of India (SEBI) which is the regulator for the securities market in India.

One who propose to invest their proprietary funds or on behalf of “broad based” funds or of foreign corporates and individuals and belong to any of the under given categories can be registered for FII.
  • Pension Funds
  • Mutual Funds
  • Investment Trust
  • Insurance or reinsurance companies
  • Endowment Funds
  • University Funds
  • Foundations or Charitable Trusts or Charitable Societies who propose to invest on
    their own behalf, and
  • Asset Management Companies
  • Nominee Companies
  • Institutional Portfolio Managers
  • Trustees
  • Power of Attorney Holders
  • Bank