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ë India opened its stock market to foreign investors
in September 1992.
ë since 1993,received portfolio investment from foreigners
in the form FII
ë In order to trade in Indian equity market foreign
corporation need to registered with SEBI as FII.




 foreign Institutional Investor (an "FII") as an institution
established or incorporated outside India which
proposes to make investment in India in securities of
companies incorporated in India (³Indian Companies´)




 n 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
º hedge funds,
º Insurance companies,
º Pension funds and mutual funds.











º Pension Funds
º Mutual Funds
º Insurance Companies
º Investment Trusts
º Banks
º Endowments
º Foundations
º Charitable Trusts/Charitable Societies


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




s per Regulation 6 of SEBI (FII) Regulations,1995
º The applicant should be regulated by an appropriate
foreign regulatory authority
º The applicant is required to have the permission under
the provisions of the Foreign Exchange Management
ct, 1999from the Reserve Bank of India.
º pplicant must be legally permitted to invest insecurities
outside the country or its in-corporation /establishment.

º The applicant must be a "fit and proper" person.
º The applicant has to appoint a local custodian and enter
into an agreement with the custodian.
The fees for registration:
º US$ 5,000 for an FII account
º US$ 1,000 for each sub account.
º SEBI targets a timeline of 10 to 12 days for processing
of FII applications.
º Valid for 5 years.
 







ºPension Funds
ºMutual Funds
ºInsurance Companies
ºInvestment Trusts
ºBanks
ºEndowments
ºFoundations
ºCharitable Trusts/
Charitable Societies








 







 !"

The Indian capital markets have been left reeling under the
impact of liquidity crunch caused by multiple factors

It began with two mega issues of reliance power and future

capital holdings, which drew out huge amounts of money
from the market

FIIs withdraw from the capital market with more

than Rs 10000 crores.
 

 Foreign direct investment is that investment , which is
used to made the business interests of the investor in a
company, which is in a different nation distinct from the
investor¶s country of origin.
 The parent enterprise through its foreign direct
investment effort seeks to exercise substatial µControl¶
over the foreign affiliate company.

Exp. ± n merican company taking a majority stake in

a company in India.





 foreign direct investor may be classified in any sector
of the economy and could be any one of the following
 an individual;
 a group of related individuals;
 an incorporated or unincorporated entity
 a public company or private company
 a group of related enterprises
 a government body
 an estate (law), trust or other societal organisation; or
 any combination of the above.
 | 

 Firms want a presence in foreign markets
 Firms want control over growth of these
foreign markets
To gain first mover advantages
To ward off competitors
To determine locations, advertising and other
related strategic decisions in the firm¶s interest.
 


iberal, largest democracy, Political stability.
 Second largest emerging market (US$ 2.4 trillion)
 Skilled and competitive labors force
 ighest rates of return on investment
 Second largest group of software developers after the
U.S.

ists 6,500 companies on Bombay Stock

ow costs & Tax exemptions in SEZ
 as a middle class estimated at 300 million out of a total
population of 1 billion
 rowth over the past few years averaging 8%


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1. Mauritius 39,379 44

2. Singapore 8,071 9

3. U.S. 6,508 7

4. U.K 5,289 6

5. Netherlands 3,701 4

6. ermany 2,379 3

7. France 1,233 1
 








º 
is when a foreign company brings capital into a
company or economy to set up a production or some
other facility

I is when a foreign company buys equity in any
company through stock market.
º 
gives some CONTRO
in operation of foreign
company to the foreign company.


does not give any control in operation of foreign
company.
º 
brings long term capital.


brings short term capital.
º 
involves in direct production activity and is long term
in nature.


is mostly the short term investment mostly in financial
market.
º 
enables a degree of control in the company.


does not involve in degree of control in the company.





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 is an instrument used in
India to facilitate the access to foreign money by Indian corporations
and PSUs (Public Sector Undertakings). ECBs include commercial
bank loans, buyers' credit, suppliers' credit, securitised instruments
such as Floating Rate Notes and Fixed Rate Bonds etc., credit from
official export credit agencies and commercial borrowings from the
private sector window of Multilateral Financial Institutions
 External Commercial Borrowings (ECBs) include bank
loans, suppliers' and buyers' credits, fixed and
floating rate bonds (without convertibility) and
borrowings from private sector windows of
multilateral Financial Institutions such as
International Finance Corporation. Euro-issues
include Euro-convertible bonds and Rs.
 Yp

Yp 
p
p 
 n outward-bound FI is backed by the government
against all types of associated risks. This form of FI is
subject to tax incentives as well as disincentives of
various forms.
 ifferent economic factors encourage inward FIs.
These include interest loans, tax breaks, grants,
subsidies, and the removal of restrictions and limitations.


  

 



 is the entry of funds into
a country where foreigners make purchases in the
country¶s stock and bond markets, sometimes
for speculation.
 It is a usually short term investment (sometimes less than a
year, or with involvement in the management of the company),
as opposed to the longer term Foreign Direct Investment
partnership (possibly through joint venture), involving transfer
of technology and "know-how".



  


 FVCIs (Foreign Venture Capital Investors) registered with
SEBI are allowed to invest in units of venture capital funds
any limit. FVCI investment in equity of Indian venture capital
 undertakings is also allowed. The limit for such investments
would be based on the sectoral limits under the FDI policy

p
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p

The NRIs are permitted to freely acquire immoveable property
(other than agricultural land, plantations and farmhouses).
There are no restrictions regarding the number of such
properties to be acquired. The only restriction is that where the
property is acquired out of inward remittances, the repatriation
is restricted to principal amount for two residential properties.
There is no such restriction in respect of commercial property.
NRIs are also permitted to avail of housing loans for acquiring
property in India and repayment of such loans by close
relatives is also permitted.






×
Y 
 OR
 B NK :
SORT INTROUCTION
º N ME : OR
 B NK
º .Q. :  SINTON .C.
º EST. : 27 EC 1945
º MEMBERS : 185 COUNTRIES
º CURRENT PRESIENT : ROBERT B. ZOE

ICK.
º ST FF : 10000 IN 100 COUNRIES
º UTORIZE C PIT
: $184 BI

ION
º FIN NCI
SOURCES : BORROIN ON
 INTERN TION
M RKET
   |  

º International Bank for Reconstruction and Development
(IBRD)
º International Development Association (IDA)
º International Finance Corporation (IFC)
º Multilateral Investment Guarantee Agency (MIGA)
º International Centre for Settlement of Investment Disputes
(ICSID)

 orld Bank provides technical and financial assistance to
underdeveloped nations for development schemes like
building roads, schools, hospitals, etc. The main aim is to
eliminate poverty from the world.
 The orld Bank collaborates with numerous other partners
and multilateral organizations, including the orld Health
Organization ( HO) and the Food and Agriculture
Organization (FAO), to realize the most far-reaching results
possible.
 

 pp!"p 

The Asian Development Bank (ADB) is a multilateral

development finance institution whose mission is to reduce
poverty in the Asia Pacific region.
The ADB was founded in 1966 with the goal of eradicating
poverty in the region. ith over 1.9 billion people living on
less than $2 a day in Asia, the institution has a formidable
challenge.

 It Ã
  for countries in the Asia
Pacific region:
 Provides loans and equity investments to its developing
member countries (DMCs)
 Provides technical assistance for the planning and execution of
development projects and programs and for advisory services
 Promotes and facilitates investment of public and private
capital for development
3
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!p Y  

 The International Monetary Fund was conceived in July 1944.
The International Monetary Fund (IMF) is an organization of
187 countries, working to foster global monetary cooperation,
secure financial stability, facilitate international trade, promote
high employment and sustainable economic growth, and
reduce poverty around the world.