Bee fdi and fii ppt
- 1. SHRI GOVINDRAM SEKSARIYA INSTITUTE OF TECHNOLOGY AND SCIENCE Presented by Aayushi Joshi, Nitin Verma, Yashika Nagar, Shubham Khandale Topic:- Foreign Direct Investment (FDI) & Foreign Institutional investor (FII) Guided By Astt. Prof. Vaniki Joshi
- 2. Contents • Introduction of Foreign Investment. • Foreign Direct Investment(FDI). • Introduction of FDI to Indian Economy. • Foreign Institutional Investors(FII). • Impact of FII in Indian Economy. • Difference between FDI and FII. • Conclusion.
- 3. Foreign Investment Foreign investment involves capital flows from one country to another in order to gain ownership in domestic company. There are two types of foreign investments:
- 4. Introduction Foreign Direct Investment (FDI) is a type of investment in an enterprise in a country by another enterprise located in another country by buying a company in the target country or by expanding operations of an existing business in that country.
- 5. Features of FDI • FDI is an important stimulus for the economic growth of India . • FDI create high perks jobs for skilled employee in Indian service sector. • FDI plays an important role in the development of infrastructure
- 6. FDI- Advantages Vs Disadvantage • Advantages Increase in employment. Increase in tax revenues. Economy growth. Development of human resources. Quick supply of money. Reduced cost of production. • Disadvantages Destruction of local entrepreneurs. Contribution to pollution. Exchange crises. Inflation in the economy. Political corruption
- 7. FDI Permissions in INDIA: FDI Is Not Permitted In The Following Sectors: • Arms and ammunition. • Atomic Energy, Railway Transport and Coal. • Mining of iron, gold, diamonds, copper, zinc. FDI Is Permitted Under The Following Form Of Investment: • Through financial collaborations. • Through capital market via euro issues. • Through joint ventures and technical collaborations.
- 8. Foreign Direct Investment in INDIA
- 11. FOREIGN INSTITUTIONAL INVESTORS IN INDIA: Foreign investment refers to the investments made by the residents of a country in the financial assets and production process of another country.
- 12. Salient Features of FIIs: • Increases Forex Reserves. • Increases Domestic savings. • Increases Domestic Investments. • Free Entry and Exit. • Referred As Hot Money.
- 13. FII- Advantages Vs Disadvantage • Advantages Enhance flows of equity capital. Improves Capital Markets. Helps In Development of Economy. • Disadvantages Leads to Inflation Problems for Small Investors. Hot Money. Short Term Investment.
- 14. Where FII Can Invest? • Securities In primary and Secondary markets including shares and debentures listed on a recognized stock exchanges. • Units of mutual funds. • Dated government securities. • Commercial Papers. • Derivatives.
- 15. Impact of FII on Indian Economy. • FII and Stock Market. • FII and appreciation of currency. • FII and Exports • FII and Inflation.
- 16. Differences between FII & FDI (FII versus FDI) FDI FII Investment in done in primary sectors Investment is done in secondary markets. Long Term Investment Short Term investment It is Stable It is unstable It has long term impact. It has short term impact. Management control is there. Profit earning is the main motive. Stakeholding varies between 10-20%. Stakeholding restricted to below 10%. FDI and FII both needs SEBI registration.
- 17. CONCLUSION • Both FDI and FII or FPI are essential for any developing as well as developed Economy. • Though FDI and FII both helps an economy to grow, but still FDI Proves to be an Effective Investment.
- 18. Thank You..