What is FII?

What is FII
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What is FII? Check Detailed Information

Foreign Institutional Investors are those investors who invest in the Indian share market but they are not from India but from other countries. Such investors are called FII. They can be investors in insurance business, mutual fund business or investors of any country. If FIIs invest in our country, it is very beneficial for the economic system of our country.

Investment by FIIs in a country determines the growth of that country. The more they invest, understand that the country is progressing that much. And if they take back that much money from your country, understand that the situation in the country is no longer stable or your country is not going to be stable in the future.

They say that before a ship sinks, mice flee from that ship, similarly when trouble comes FIIs take out their money from your country by selling their goods.

If any FII wants to invest in India, then that FII has to register itself with SEBI and has to follow all kinds of rules and regulations. The rules for them are also a little strict because they are not from India but from some other country.

Names of some top FII investors are Euro Pacific Growth Fund, J.P. Morgan, Morgan Stanley.

What are the limits of FII in Indian share market?

  1. FIIs cannot invest more than 10% of their total investment in companies listed in the Indian share market.
  2. If FII wants to invest in a public sector bank, then the amount cannot be more than 20% of the paid-up capital of the bank.
  3. Foreign Institutional Investors cannot invest more than 24% of the paid-up capital in any Indian company.
  4. If individuals get permission from their shareholders, then maximum FII can invest up to 30%.
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What is FII? Check Detailed Information
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What is FII? Check Detailed Information
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What is FII? Check Detailed Information
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