Foreign Institutional Investors (FIIs) and Capital Market in India PDF Download

Author: Kulwant Singh Phull
Publisher:
ISBN: 9788177083767
Category : Capital market
Languages : en
Pages : 0

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Book Description
Since the 1990s, one of the major forces changing the face and structure of international capital markets has been the flow of cross-border portfolio investments, especially by Foreign Institutional Investors (FIIs) from developed countries to the developing economies. Portfolio investors provide institutional character to the capital markets, flavored by highly intensive research and diversified investments. FIIs are specialized financial intermediaries managing savings collectively on behalf of investors, especially small investors, towards specific objectives in terms of risks, returns, and maturity of claims. FIIs make investments in various countries to provide a measure of portfolio diversification and hedging to their assets. The forces driving the recent change in the investment portfolio of FIIs - as reflected in the growing emphasis on equities of emerging market economies - include, inter alia: (a) increased accessibility of these markets after liberalization, (b) improved marketability, (c) fewer problems relating to thin trading, and (d) improved macroeconomic fundamentals of recipient countries. This book provides a detailed account and examination of various dimensions, determinants, deterrents, and other aspects of investment flows into India through FIIs.

Author: Dr. Sridhar Ryakala
Publisher: Zenon Academic Publishing
ISBN: 938588610X
Category : Business & Economics
Languages : en
Pages : 133

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Book Description
Global integration, the widening and intensifying of links between high-income and developing countries has accelerated over the years. Over the past few years, the financial markets have become increasingly global. The Indian market has gained from foreign inflows through the investment of Foreign Institutional Investors (FIIs). Following the implementation of reforms in the securities industry in the past few years, Indian stock markets have stood out in the world ranking. During the past few years India has emerged as one of the world’s fastest growing economies. The increasing interest of foreign players in the domestic broking industry is a testimony of the stock market’s growth. The Indian stock market has also received a thrust from rise in business transactions over the years, because of sharp drop in brokerage fees and transaction costs, launch of a slew of new products, and a robust regulatory environment. The importance of institutional investors’ particularly foreign investors is very much evident as one of the routine reasons offered by market analysts’ whenever the market rises, it is attributed to foreign investors' money and no wonder we see headlines like "FIIs Fuel Rally" etc., in the business press. This is not unusual with India alone as today’s most developed economies might have seen a similar trend in the past. Domestic institutional investors on the other hand being another important section of institutional investors are playing a vital role in the Indian stock market. These investors have emerged as important players in the Indian stock market and their activities are influencing the market. There are many instances where this section of investors has stabilized the market conditions on one hand whereas their moves took the market to destabilized position on the other hand. Therefore, both FIIs and DIIs have become the most important determinants in the functioning of the Indian stock market. Thus, increasing role of these institutional investors has brought both quantitative and qualitative developments in the stock market viz., expansion of securities business, increased depth and breadth of the market, and above all their dominant investment philosophy of emphasizing the fundamentals has rendered efficient pricing of the stocks. Hence, there is a need to examine how investments made by these two groups of institutional investors’ impact each other as well as stock market returns. This book is an attempt in that direction.

Author: U. Brahmam
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
An important feature of the development of capital market in India in the last 20 years has been the growing participation of Institutional Investors. investors comprise both foreign institutional investors and the domestic institutional investors. In India, these institutional investors manage large amount of funds which constitutes a significant share of the entire market capitalization. Impact of these investors especially FIIs in Indian capital market has been a matter of debate. FII investments seem to have influenced the Indian capital market to a considerable extent. This paper makes an attempt to understand whether there exists a relationship between FII and capital market returns in India. Here, will see the impact of FIIs movement on index prices through the analysis of historical investment of FIIs and historical prices of BSE SENSEX and NSE NIFTY.

Author: Paramalakshmi Devi
Publisher: LAP Lambert Academic Publishing
ISBN: 9783847309369
Category :
Languages : en
Pages : 176

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Book Description
Foreign Institutional Investors (FII) and The Indian Stock Market An Economic Study SUMMARY Foreign Institutional Investor (FII) is used to denote an investor - mostly of the form of an institution or entity, which invests money in the financial markets of a country different from the one, where in the institution or entity was originally incorporated. FII investment is frequently referred to as hot money for the reason that it can leave the country at the same speed at which it comes in. In countries like India, statutory agencies like SEBI have prescribed norms to register FIIs and also to regulate such investments flowing in through FIIs. Foreign Exchange Management Act (FEMA), norms includes maintenance of highly rated bonds (collateral) with security exchange. Foreign Investment refers to investments made by residents of a country in financial assets and production process of another country. After the opening up of the borders for capital movement these investments have grown in leaps and bounds. But it had varied effects across the countries. It can affect the factor productivity of the recipient country and can also affect the balance of payments.

Author: Vaishali Jain
Publisher:
ISBN:
Category :
Languages : en
Pages : 11

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Book Description
The progress and prosperity of a nation is reflected by the pace of its sustained economic growth and development which is provided by investment. Not only foreign exchange domestic savings but the magnitude and quality of foreign investment is also necessary for the well being of a country. The Foreign Institutional Investors (FIIs) have emerged as important players in the Indian equity market in the recent past and are gradually becoming one of the major factors that contribute towards the growth of the financial markets, more so in developing economies like India. The main objective was to study the effect of FII flow on capital markets, extent of Granger Causality between FII flows and capital market growth and lead-lag relationship between FII flows and NSE Nifty. The database used for the study is composed of the monthly data of FII flow and NSE Nifty. While selecting the sample certain criteria were followed. While collecting data for FII flows, data pertaining to the equity investment only was used. The data used was collected integration have been computed with the help of Gretl and other relevant software available for statistical analysis. The results of the study did imply that FII investment and NIFITY were influenced by various other macroeconomic fundamentals on the basis of which growth were studied and in any way did not have any causal relationship with each other.

Author: Alan R. Kanuk
Publisher: John Wiley & Sons
ISBN: 111816072X
Category : Business & Economics
Languages : en
Pages : 336

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Book Description
Capital Markets in India: An Investor's Guide aims to provide the first comprehensive book on investing in the India markets. India is right now at the forefront of globalization. The book's focus is on the equity market, but it also addresses derivatives, fixed income, and foreign direct investments. Chapter topics include facts about the Indian economy; the Foreign Institutional Investor (FII) regulations, registration process, and applications; detail about the market regulation and the regulator; the very important market safeguards built into the Indian market systems; and lists of companies ranked by various criteria such as capitalization, turnover, industry, and earnings. The book even supplies investors and traders with contact information for many of the key institutions and market players. Readers will not only gain basic information about how the markets in India work, but also the contacts and facts to help them with their own investing plan.

Author: Ashish C. Makwana
Publisher: Mr. Ashish C. Makwana
ISBN: 9782606628963
Category : Business & Economics
Languages : en
Pages : 0

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Book Description
The role of investment in encouraging economic growth has predictable considerable concentration in India since independence. But the role of foreign institutional investment in the economic development of India is a recent topic of debate. The issues of role of FIIs investments and volatility of Indian stock market have become increasingly central issues in recent times to financial practitioners, market participants, regulators and researchers.

Author: Rajesh Chakrabarti
Publisher: SAGE Publications
ISBN: 8132105001
Category : Business & Economics
Languages : en
Pages : 419

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Book Description
This book provides a comprehensive picture of the recent trends and developments in the Indian finance scenario. It provides the reader with a comprehensive description and assessment of the Indian capital markets and an analytical approach together with a description of major recent developments and the current status of the finance sector. The collection deals with issues like brokerage, security analysis, and underwriting, as well as the legal infrastructure of the markets. It focuses primarily on the Indian stock markets, corporate bond markets and derivatives markets. It also looks at the importance of asset management companies such as those involved with mutual funds, pension funds and venture capital funds to gain a better understanding of the asset management industry in India.

Author: M. Shanmukha Rao
Publisher: Mr. M. Shanmukha Rao
ISBN: 9783509145359
Category : Business & Economics
Languages : en
Pages : 0

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Book Description
The present study concentrated on the Foreign Institutional Investment (FII) in India, in this chapter researcher discussed the brief background of the Indian Financial System. The Foreign Investments are one of the components of any financial system; in this consideration, we have to understand the financial system in India, reforms which facilitate the flow of foreign capital.

Author: Kumar Rohit
Publisher:
ISBN: 9788081611865
Category : Business & Economics
Languages : en
Pages : 0

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Book Description
Investment is the most important pre-requisite for the economic development of a nation. However, many of the developing countries, including India are capital scarce. Hence these countries rely on funds from other economies to meet their capital requirements. Based on the risk involved, the funds from outside the nation can be basically classified into two: debt creating funds and non-debt creating funds. The debt creating funds are borrowed funds and it should be repaid with interest. The nondebt creating funds are the acquisition of ownership in the productive assets in a country by the foreigners. The important non-debt creating sources of foreign capital are Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI). Foreign Direct Investment is the investment made by an entity based in one country in the business of another country with the objective to obtain control in the business. On the other hand, Foreign Portfolio Investment is the mechanism in which a foreign entity acquires the stocks, bonds and financial assets in another country through stock exchanges, without the objective to obtain control in the business. Hence, such investment is generally short term and volatile in nature. In India, foreign portfolio investment is mainly made by the foreign entities registered with SEBI and they are known as Foreign Institutional Investors1 (FIIs).