Eco ppt
- 2. Introduction FII is when a foreign co. buys equity in a company through the stock markets Attracted towards Indian equity. Agencies Regulating FII in India: RBI FIPB: - Reviews all foreign Investment proposals. SEBI: - which regulates India’s capital "
- 3. Financial instruments available for FII investments Securities Units of mutual funds Dated Government Securities Derivatives Commercial papers
- 4. P- NOTES/OFF-SHORE DERIVATIVES Used to trade in Indian markets Through brokerage houses The brokerage houses then repatriate the dividends and capital gains back to these entities. They keep the investor’s name anonymous
- 5. Investment limits no more than 10% of the equity in any one company no more than 10% in the equity in any one company on behalf of a fund sub-account no more than 5% in the equity in any one company on behalf of a corporate/individual sub-account no more than 24% in the aggregate of the total issued capital of a company to be held by FIIs
- 6. Areas affected by FII Stock Market Exchange Rates Exports & Imports Inflation
- 7. ADVANTAGES Enhanced flows of equity capital Improving capital markets Trading & delivery volume raises Volatility will be curtailed More liquidity will be created Standard will be improved
- 8. DISADVANTAGES Problems of inflation Hot money False representation of economy Cannot be utilized for long term Problem for small investor
- 9. FDI V/S FII Brings capital into a country for production or some other facility. Direct production activity & also of medium to long term nature. A degree of control in the company. Long term capital Buys equity in a company through the stock markets Short term investments mostly in the financial markets No degree of control in a company. Short term capital
- 10. Influence of FIIs on Indian Stock Market " FIIs Fuel the Market Run". Increase depth and breadth of the market. Major role in expanding securities business. Efficient pricing of shares .
- 11. TRENDS IN FIIS
- 15. % CHANGE IN INVETSMENTS
- 17. NET INVESTMENTS JAN –JUL 09
- 19. FII holding is estimated at close to $100 billion Gross purchases Rs 2,846.60 crore and gross sales Rs 2,586.60 crore. Total of 1675 foreign funds registered with the Securities & Exchange Board of India (Sebi). FII inflows of US$ 7 billion since March 2009 have helped the rupee climb about 10.5 per cent to 47.24/25 per dollar from its low of 52.2 recorded therein
- 20. BUDGET IMPACT ON FIIs No permission to invest in commodity derivatives. Public float of listed company Zero coupon bonds
- 21. Conclusion There is a direct relation between the FII's money flow and the movement of sensex. The present condition FII inflow in July 2009 totaled Rs 5,668 crore (till 17 July 2009). FIIs had bought stocks worth a net Rs 3,224.90 crore in June 2009. FII inflow in calendar year 2009 totaled Rs 30,212.20 crore (till 17 July 2009). In the January-March 2009 quarter, FII interest in major cement manufacturers has also increased