what is the FDI and FII.?

Question

in investment terms

Answer 1

All governments allow foreign investments into the country through some regulations and different rate of taxes.
FDI is referred to Foreign Direct Investment., which a foreigner can invest in a country.
FII refers to Foreign Institutional Investment, which a institution can invest in a country.

Answer 2

Foreign direct investment (FDI) is defined as "investment made to acquire lasting interest in enterprises operating outside of the economy of the investor."[1] 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.
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 FII's and also to regulate such investments flowing in through FII's.

Answer 3

FDI (Foreign Direct Investment), is defined as a firm based in one country (the 'home country') owning 10 percent or more of the stock of a company located in a foreign country (the 'host country') -- this amount of stock is generally enough to give the home country firm significant control rights over the host country firm. Most FDI is in wholly-owned or nearly wholly-owned subsidiaries. Other nonequity forms of FDI include: subcontracting, management contracts, franchising, and licensing and product sharing.

FII (Foreign Institutional Investor) means an entity established or incorporated outside India which proposes to make investment in India.
Following is a good link on FII
http://investor.sebi.gov.in/faq/foreign%20institutional%20investor.html

Answer 4

FDI= Foreign Direct Investments.

Investments made by the foreigners into a country directly in the various sectors.

FII= Foreign Institutional Investors.

These can be Mutual funds, Hedge funds, pensions funds, bankers, merchant bankers et al. These will preferably invest into various financial securities.

Answer 5

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