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UNIVERSITY OF MUMBAI

A PROJECT ON

FOREIGN INSTITUTIONAL INVESTORS ( FII) (BANKING AND FINANCE)

SUBJECT: FINANCIAL MANAGEMENT

In Partial F l!ill"#nt $! t%# r#& ir#"#nt n'#r S#"# t#r B$ar' Cr#'it an'

B$ar' S t#" !$r P$ t Gra' at# (PG)

Pr$*ra" n'#r Fa+ lt $! C$""#r+#

SUBMITTED BY:

Na"rata G$%il

R$ll N$,-.

PROJECT GUIDE

Pr$!, Anita

S '#n%a" C$ll#*# $! C$""#r+# an' E+$n$"i+ / 0B0 r$a'/ C% r+%*at#/

M "1ai2344454

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CERTIFICATE

T%i i t$ +#rti! t%at Na"rata G$%il Ban6in* an'

Finan+# S#"# t#r III (54.72.3) R$ll n$, -.%a++# ! ll +$"8l#t#' t%# 8r$9#+t n'#r t%#

* i'an+# $! Pr$!, Anita,

C$ r # C$2$r'inat#r Prin+i8al

Pr$9#+t * i'# Int#rnal E;a"in#r

E;t#rnal E;a"in#r

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DECLARATION

I Na"rata M.com Part 2 Banking and FinanceSemester 2!"#$" % %#r#1 '#+lar# t%at I %a

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AC&NO'LE(EMENT

I =$ l' in+#r#l li6# t$ *i

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INDE)

SR No. To*ics Page No.

". Introd+ction

2. In,estment Conditions

#. Sa-ient Feat+res O FII

. E/*ected (ains

0. Disad,antages o FII

1. Di erence Bet een FII 3 FDI

4. T5*es O In,estments

6. (o,ernments Pre erences

7. Sta8i-it5

"!. Sectora- Ca* o FII

"". Macro Economic Im*act

"2. Conc-+sion

"#. India9s F+t+re

" . Recommendations

"0. Bi8-iogra*:5

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FOREI(N INSTIT;TIONAL IN

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In'ian #+$n$" , Si" ltan#$ l / t%# G$

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8r$8$ in* t$ "a6# 8r$8ri#tar in

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Registration Process o FIIs=

A FII i r#& ir#' t$ $1tain a +#rti!i+at# 1 SEBI !$r '#alin* in #+ riti# , SEBI *rant t%#

+#rti!i+at# SEBI 1 ta6in* int$ a++$ nt t%# !$ll$=in* +rit#ria:

i) T%# a88li+ant0 tra+6 r#+$r'/ 8r$!# i$nal +$"8#t#n+#/ !inan+ial $ n'n# / #;8#ri#n+#/

*#n#ral r#8 tati$n $! !airn# an' int#*rit ,

ii) %#t%#r t%# a88li+ant i r#* lat#' 1 an a88r$8riat# !$r#i*n r#* lat$r a t%$rit ,

iii) %#t%#r t%# a88li+ant %a 1##n *rant#' 8#r"i i$n n'#r t%# 8r$

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In,estment Conditions and Restrictions or FIIs=

A F$r#i*n In tit ti$nal In

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a++$ nt , A !$r#i*n +$r8$rat# $r in'i

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Entities :ic: can register as FII9s in India=

Entiti# =%$ 8r$8$ # t$ in

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$! !inan+in* 8#n i$n 8lan 1#n#!it , It "ana*# 8#n i$n an' %#alt% 1#n#!it !$r #"8l$ ## /

r#tir## / an' t%#ir !a"ili# , FII a+ti

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n#ar @#r$ int#r# t rat# in Ja8an an' in

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Foreign Instit+tiona- In,estors ma5 in,est in Indian t:ro+g: t o ro+tes= E& it

In

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P 1li+ S#+t$r Ban6 (#;+#8t DFC Ban6)/ t%# in

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in

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t$ 8#r"it SEBI r#*i t#r#' '$"# ti+ ! n' "ana*#r t$ "ana*# !$r#i*n ! n' !$r

in

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SEBI initial r#*i trati$n =$ l' 1#

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=it%%$l'in* ta; $n +a8ital *ain an' arran*in* t$ 8a +% ta; an' r#"ittin* t%# n#t

8r$+##' at "ar6#t rat# $! #;+%an*#,

), R#*i t#r FII %$l'in* =it%$ t an ! rt%#r +l#aran+# n'#r FERA,

T%#r# =$ l' 1# n$ r# tri+ti$n $n t%#

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FII +an a88$int an + t$'ian an a*#n+ a88r$

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in

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'#"an' !$r n$n2tra'a1l# *$$' / =%i+% r# lt in a88r#+iati$n $! t%# r#al #;+%an*# rat#,

it% a !l$atin* #;+%an*# rat# r#*i"# an' n$ +#ntral 1an6 in

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'#

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"$

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i! 8ri+# ar# ali*n#' t$ ! n'a"#ntal / t%# %$ l' 1# a ta1l# a t%# ! n'a"#ntal

t%#" #l

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>(%.Im*ro,ements to market e icienc5=

A i*ni!i+ant 8r# #n+# $! FII in In'ia +an i"8r$

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"i "ana*#"#nt/ (ii) li& i'it ri 6 an' (iii) + rr#n+ "$

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+% tra'in* 1#%a

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& # t !$r *r#at#r FDI, F rt%#r"$r#/ SEBI ta6#$

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In tit ti$nal in

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"a'# t$ a+& ir# a la tin* "ana*#"#nt int#r# t ( all .4 8#r+#nt $!

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#+$n$" , Sin+#/ t%# # 8$rt!$li$ !l$= +an t#+%ni+all r#

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+r#'i1l# in

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Sectora- Ca*s on FIIs=

F$r#i*n in tit ti$nal in

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A t%# 53 8#r+#nt li"it $n FII in

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In +a # $! lar*# *#n#rati$n 8r$9#+t / t%# M#*a P$=#r P$li+ al $ 8r$

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Conc-+sion=

F$r#i*n In tit ti$nal In

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+$"8#t#nt t#+%ni+al/ "ar6#tin* an' 1 in# "an8$=#r in Li

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+$"8#titi

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In'ia " t #;t#n' a %$ 8ita1l# #n

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B$t% t%# FII an' FDI %$ l' 1# in