how do u differentiate fdi and fii??

Answer 1

Well, it depends on what you take FII to mean... Some people use FII to mean "foreign inward investment", which consists of FDI (foreign direct investment, whereby foreign companies acquire local companies, purchase land and real estate, and build factories and warehouses) and foreign portfolio investment (whereby foreign investors, mostly financial institutions, purchase publicly traded stocks and bonds of local companies). Other people think FII stands for "foreign institutional investment", which is largely the same thing as foreign portfolio investment, since most of foreign portfolio investors are institutions...

Answer 2

(FDI - foreign direct investment) is 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.

FII (Foreign Institutional Investor ) 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 can leave the country at the same speed at which it comes in.In India, statutory agencies like SEBI have prescribed norms to register FII's and also to regulate such investments flowing in through FII's.
in a company in india

Answer 3

Following defintion will help to differetiate :

FDI (Foreign direct investment) 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.

FII (Foreign Institutional Investor )] 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 India, statutory agencies like SEBI have prescribed norms to register FII's and also to regulate such investments flowing in through FII's.