Volume : IV, Issue : XI, November - 2014

FOREIGN INSTITUTIONAL INVESTORS: AN INTRODUCTION

S. Sudhamathi, Prof. Dr. S. Kaliyamoorthy

Abstract :

An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies. An institutional investor can have some influence in the management of corporations because it will be entitled to exercise the voting rights in a company. Thus, it can actively engage in corporate governance. Furthermore, because institutional investors have the freedom to buy and sell shares, they can play a large part in which companies stay solvent, and which go under. Influencing the conduct of listed companies, and providing them with capital are all part of the job of investment management. Foreign institutional investors have gained a significant role in Indian stock markets. The dawn of 21st century has shown the real dynamism of stock market and the various benchmarking of sensitivity index (Sensex) in terms of its highest peaks and sudden falls.. We attempted to explain the impact of foreign institutional investment on stock market and Indian economy.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

S. SUDHAMATHI, Prof.Dr.S. KALIYAMOORTHY Foreign Institutional Investors: an Introduction Indian Journal of Applied Research, Vol.4, Issue : 11 November 2014

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