SUMMER INTERNSHIP PROJECT REPORT

ON

“FOREIGN INVESTMENTS
AND ITS

IMPACT ON INDIAN STOCK MARKET”

Submitted in Partial Fulfillment of the requirements for the Award of

The degree of

Master of Business Administration

From

UNIVERSITY OF KOTA, KOTA, RAJASTHAN

2008-2010

Performed at

INDIA INFOLINE LIMITED, KOTA, RAJASTHAN

FOREIGN INVESTMENTS
AND
IT’S IMPACT ON
INDIAN STOCK MARKET
 PROJECT REPORT
ON

“IMPACT OF FOREIGN INVESTMENT ON INDIAN STOCK

MARKET”

Prepared for the partial fulfillment of the continuous evaluation of the

Internal assessment of Summer Internship Project Report for MBA at

University Of Kota, Kota, Rajasthan

2008-2010

Submitted To:

Department of Commerce & Management, University Of Kota

Accomplished At:

India Infoline Limited, Kota, Rajasthan.

Guided By: Submitted By:

Mr. Pramod Vijay Rishabh Mehta
Senior Relationship Manager Enrollment # 08/18799
 DECLARATION

I hereby declare that the case study on “Impact of Foreign Investment

on Indian Stock Market” is submitted to the Department of Commerce
& Management, University of Kota, Kota, Rajasthan for the partial
fulfillment of the continuous evaluation of the internal assessment of
Summer Internship Report MBA year 2008-2010.

The report is a record of original project work done by me during the

period of 6th Aug, 2009 to 30th Sep, 2009. at in India Infoline Ltd, Kota
Branch, Kota, Rajasthan under the guidance of Mr. Pramod Vijay &
for the purpose of studying the investment Patterns and Stock Market
Functionalities. This report has never been submitted else for award of
any degree or diploma.

Place: Kota Rishabh Mehta

Date:
 ACKNOWLEDGEMENT

I t plunge me in exhilaration in taking privilege in expressing our heart felt

gratitude to Ms Shabnam Bano, Branch Manager, India Infoline, Kota Branch,
for her admirable and valuable guidance, keen interest, encouragement and
constructive suggestions during the course of the project.

I consider my proud privilege to express deep sense of gratitude to Dr. K.C.

Goyal Head of Department, Department of Commerce and Management,
University Of Kota, who is the potency and an encouragement behind me.

I want to thank Mr. Pramod Vijay, Senior Relationship Manager, India Infoline
Ltd. Kota Branch for providing us an opportunity to take this project work &
under whose supervision & guidance whole of the project has got its shape.

I would also like to express thanks to Mr. Prateek Saxena, Relationship Manager
and Ms. Garima Arora, Relationship Manager, India Infoline Limited, who was
closely associated with the project right from the beginning and provide me
deliberate support.

I am very grateful to my parents, family members and friends for their

wholehearted support.

My sincere appreciation also goes to those clients, domestic investors and foreign
investors who altruistically revealed important information regarding the
opportunities in India and deliberately invest in Indian Stock Market.

Last but not least; the whole project work has got its shape successfully only
because of the grace of the Almighty God.

Rishabh Mehta
 TABLE OF CONTENTS

PROLOGUE
PREFACE
EXECUTIVE SUMMARY
OBJECTIVE
RESEARCH METHODOLOGY

ABOUT INDIA INFOLINE LTD

CORPORATE PROFILE
COMPETITIVE ADVANTAGE
PRODUCT AND SERVICES
BUSINESS & OPERATIONS
INFRASTRUCTURE
MANAGEMENT TEAM

FOREIGN INVESTMENTS
ABSTRACT
DESCRIPTION OF FII
GLOBAL PLAYERS IN INDIA
REASON FOR GROWTH IN FII
FII: A COST BENEFIT ANALYSIS
DETERMINANTS OF FII
ROLE OF FOREIGN INVESTMENTS

POLICIES AND GUIDELINES

POLICY FRAMEWORK
FDI IN INDIA

EPILOGUE
SWOT ANALYSIS
CONCLUSION
RECOMMENDATION

ANNEXURE
AGENCIES/ DEPARTMENTS INVOLVED WITH CLEARANCES APPROVALS
FDI PERMITTED IN VARIOUS SECTORS/ ACTIVITIES
SECTOR-WISE FDI INFLOWS (APRIL 2000 TO JANUARY 2009)
GLOSSARY OF ABBREVIATIONS
REFERENCE AND BIBLIOGRAPHY