Foreign Institutional Investors: Indian and Global Scenario

A significant improvement has taken place in India relating to the flow of foreign capital in the post-economic reforms era. Foreign Institutional Investors (FIIs) investments in trade and industrial segments have particularly increased. There has been a consistent upsurge in FII since 2002-2003 and they have started playing a significant role in the Indian capital market. In the international context, with the increasing global significance of institutional investors and their portfolio managers, common standards set within well-defined parameters are clearly on the agenda – convergence is the name of the game. The Indian market is driven by global decisions, which in turn, are determined by speculative activities of key investors. Equities have been converted into a day-trading market, which makes markets highly volatile. The situation calls for appropriate measures to reduce the influence of these investors in order to stabilize the economy and thereby, its growth. This book attempts to capture the various perspectives of FIIs in the contemporary economies of the world. In the Indian scenario, it focuses on the current trends of FIIs, their impact on Indian economy, the effect on the Indian stock markets, and the regulatory framework pertaining to FIIs. It also provides an insight into the global perspectives of FIIs with reference to select countries. It is hoped that readers find the book informative and resourceful.