FOREIGN INSTITUTIONAL INVESTORS

Presented byTrideb Choudhury(290)

Flow of presentation

How FII started in India? What does it mean? Who can be registered?

How to apply?
Eligibility criteria Registration process where FII can invest? Impact in Indian market

How FII started in India?

India opened its stock market to foreign investors in September 1992. Since 1993, received portfolio investment from foreigners in the form of foreign institutional investment in equities.

This has become one of the main channels of FII in India for foreigners.

WHAT IS FII?

Foreign institutional investor means an institution established or incorporated outside India which proposes to make investment in India in securities

WHO CAN BE REGISTERED AS AN FII?

Pension Funds Mutual Funds Investment Trust

Insurance or reinsurance companies

Endowment Funds University Funds Foundations or Charitable Trusts or Charitable Societies.

Bank

Eligibilty criteria

Whether the applicant has been in existence for a period of at least 5 years. Whether it is legally permissible for the applicant to invest in securities outside the country of its incorporation or establishment. Whether the applicant has been registered with any statutory authority in the country of their incorporation or establishment. Whether any legal proceeding has been initiated by any statutory authority against the applicant. Whether the applicant has been serving public

Contd.

Broad Based Funds: a fund, established or incorporated outside India.

At

least twenty investors.

No

single individual investor holding more than forty-nine per cent of the shares or units of the fund.

Registration Process

Documents Required

Copies of memorandum of association and articles of association of the FII. Brochures of the FII and its parent/group company. Audited financial statements and annual reports for the last five years. Documents to support registration or regulation by a Securities Commission or Self-Regulatory Organization, or any other appropriate regulatory authority recognized by the SEBI. Copy of the Custodian Agreement with a custodian in India.

Where to invest
Securities in primary and secondary markets including shares, debentures and warrants of companies, unlisted, listed or to be listed on a recognized stock exchange in India; Units of mutual funds. Dated Government Securities. Derivatives traded on a recognized stock exchange. Commercial papers security receipts

Impact Of FIIs On Indian Markets

In the past four years there has been more than $41 trillion worth of FII funds invested in India. This has been one of the major reasons on the bull market witnessing unprecedented growth with the BSE Sensex rising 221% in absolute terms in this span. The present downfall of the market too is influenced as these FIIs are taking out some of their invested money. For long-term value investors, theres little because for worry but short term traders are adversely

THANK YOU.