Institutional Investors: Emerging Trends

Indian markets seem to be the favourite investment destination for many. The continuous upsurge of the Bombay Stock Exchange has brought cheer to the investment community coupled with the ever-increasing investment through the FDI route. In India, retail participation has always remained miniscule with major participants being institutional players. Among this category of investors, foreign investors are of primary significance. This book takes a closer look at the rise of Foreign Institutional Investors (FIIs) in India and also peeps into the entry in the Indian markets of Foreign Direct Investments (FDIs) and private equity.FIIs increase both the volatility and liquidity in the market. The Government has allowed several investment avenues for the FIIs. With the Indian financial market providing a fertile investment ground for attractive returns, FIIs are here to stay. If FII was the primary mover in the capital markets, FDI was not left far behind in real asset investments. Private equity too, plays a crucial role in shaping the capital markets of any country, be it a developed nation or an emerging economy. Private equity investors are several cash rich financial institutions and high net worth individuals who are always on the lookout for better returns. Today, private equity plays a crucial role in shaping the capital markets of many countries, both in developed nations and emerging economies and India is no exception to this.