Contents: Preface. 1. Foreign investment: theoretical framework. 2. Review of literature on FIIs. 3. Structure of capital market in India. 4. Foreign direct investment (FDI) versus foreign portfolio investment (FPI). 5. Dimensions of FIIs in India. 6. Determinants of FIIs in India. 7. Deterrents of FIIs in India. 8. Portfolio investment flows: global experiences. 9. Summing up. Bibliography. References. Index.
One of the major forces changing the face and structure of international capital markets since 1990s has been the flow of cross-border portfolio investments—especially by foreign institutional investors (FIIs)—from developed countries to the developing economies. Portfolio investors provide institutional character to the capital markets, flavoured by highly intensive research and diversified investments.
FIIs are specialised financial intermediaries managing savings collectively on behalf of investors, especially small investors, towards specific objectives in terms of risks, returns, and maturity of claims.
FIIs make investments in various countries to provide a measure of portfolio diversification and hedging to their assets. The forces driving the recent change in the investment portfolio of FIIs—as reflected in the growing emphasis on equities of emerging market economies—include inter alia: (a) increased accessibility of these markets after liberalisation, (b) improved marketability, (c) fewer problems relating to thin trading, and (d) improved macroeconomic fundamentals of recipient countries.
Investments by FIIs first started flowing into India in 1993. Since then, these investment inflows have been quite substantial. Policies relating to portfolio investment have been liberalised in recent years.
This book provides a detailed account and examination of various dimensions, determinants, deterrents and other aspects of investment flows into India through FIIs.(jacket)