final_eco
TRANSCRIPT
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
F OREIGN
INSTITUTIONAL
INVESTORS
SUBMITTED TO
P ROF . B HARGAVI
SUBMITTED BY
SWAPNAGANDHA BHENDE (06)
M ITESH G ALA (15)
N IDHI M EHTA (32)
NANDITA P UROHIT (41)
IMIT T HA!!AR (54)
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$)
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" ONTENT
S#.N$. T$%&' P * N$.
Int' d *ti n "
# India + An Att'a*ti e -estinati n . ' FII/s
" FII In est&ents + 1hat &a2es the& signi.i*ant 0
$ G' wth . FII/s #
! 3 w hea4th5 is FII a'ti*ipati n !
6 FII/s + M ing the Ma'2et #6
7ene.its 8 9 sts . FII/s #:
; Iss es and 9ha44enges Fa*ing FII/s in India "$
: 9 n*4 si n "
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) #
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INTRODU"TION
Inte'nati na4 p 't. 4i .4 ws a'e, as pp sed t . 'eign di'e*t in est&ent, 4i< id in nat 'e
and a'e & ti ated =5 inte'nati na4 p 't. 4i di e'si.i*ati n =ene.its . ' indi id a4 andinstit ti na4 in est 's in ind st'ia4 * nt'ies> The5 a'e s a445 nde'ta2en =5 instit ti na4
in est 's 4i2e pensi n . nds and & t a4 . nds> S *h .4 ws a'e, the'e. 'e, 4a'ge45
dete'&ined =5 the pe'. '&an*e . the st *2 &a'2ets . the h st * nt'ies 'e4ati e t
w '4d &a'2ets> 1ith the pening . st *2 &a'2ets in a'i s e&e'ging e* n &ies t
. 'eign in est 's, in est 's in ind st'ia4 * nt'ies ha e in*'easing45 s ght t 'ea4i?e the
p tentia4 . ' p 't. 4i di e'si.i*ati n that these &a'2ets p'esent>
F 'eign * &panies@Indi id a4s a'e pe'&itted t in est in e< it5 sha'es t'aded in IndianSt *2 &a'2ets i. the5 a'e 'egiste'ed as a F 'eign Instit ti na4 In est ' (FII) ' i. the5
ha e a s = a** nt in India>
In est&ent in Indian se* 'ities is a4s p ssi=4e th' gh the p '*hase . G4 =a4 -ep sit '5
Re*eipts (G-R), A&e'i*an -ep sit '5 Re*eipts (A-R), F 'eign 9 ''en*5 9 n e'ti=4e
7 nds and F 'eign 9 ''en*5 7 nds iss ed =5 Indian iss e's, whi*h a'e 4isted, t'aded and
sett4ed e'seas and &ain45 den &inated in US d 44a's>
F 'eign In est 's (whethe' 'egiste'ed as a FII ' n t) *an a4s in est in Indian se* 'ities
tside the FII ' te> S *h in est&ents 'e< i'e *ase =5 *ase app' a4 .' & the F 'eign
In est&ent ' & ti n 7 a'd in the Minist'5 . Ind st'5 and Rese' e 7an2 . India
(R7I), ' n45 =5 the R7I depending n the si?e . the in est&ent and the ind st'5 in
whi*h this in est&ent is t =e &ade> FII in est&ents in Indian *apita4 &a'2et is & 'e
than US B ,000 &i44i n> Indian St *2 &a'2et with a &a'2et *apita4i?ati n . e' US B
6!,000 &i44i n has =een a &aC ' att'a*ti n . ' in est 's a44 e' the w '4d, than2s t the
new e* n &5 = & and eD*e44ent . n*ti ning . St *2 ED*hanges in the 9 nt'5>
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) "
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
T*#+, - "$ /& &$ , $# # $ #* &, # &$ , FII
FII Regist'ati n is a * &=e's &e p' *ess, whi*h in 4 es 'egist'ati n with Se* 'ities and
ED*hange 7 a'd . India (SE7I) and app' a4 .' & R7I> The te'&s and * nditi ns . 'g'ant . 'egist'ati n is as =e4 w
The app4i*ant is 'e< i'ed t ha e a t'a*2 'e* 'd . ' a pe'i d . at4east ! 5ea's with
p' .essi na4 * &peten*e, .inan*ia4 s ndness, eDpe'ien*e, gene'a4 'ep tati n .
.ai'ness and integ'it5> The app4i*ant sh 4d =e 'eg 4ated =5 an app' p'iate F 'eign Reg 4at '5 A th 'it5
s *h as a se* 'ities 'eg 4at ', 9ent'a4 7an2 ' G e'n&ent Minist'5, Agen*5 '
-epa't&ent> Regist'ati n with a th 'ities, whi*h a'e 'esp nsi=4e . '
in* 'p 'ati n, is n t ade< ate t < a4i.5 as FII>
The app4i*ant is 'e< i'ed t ha e the pe'&issi n nde' the p' isi ns . F 'eign
ED*hange Reg 4ati n A*t, : " (FERA) .' & R7I>
The app4i*ant has t satis.5 the .it and p' pe' g ide4ines iss ed =5 SE7I>
The app4i*ant/s a*ti ities and its 'egist'ati n with thei' 'eg 4at '5 a th 'it5 sh 4dena=4e it t =e *ateg 'i?ed in the e4igi=4e *ateg 'ies as &enti ned a= e>
The app4i*ant has t app int a 4 *a4 * st dian and ente' int an ag'ee&ent with a
* st dian> 7esides it a4s has t app int a designated =an2 t ' te its
t'ansa*ti ns>
In additi n t the a= e, SE7I w 4d a4s * nside' whethe' the g'ant .
'egist'ati n is in the inte'est . the de e4 p&ent . the se* 'ities &a'2et>
W *#* ' & *, +* , * + /*
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) $
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
FII I NVESTMENTS 9 W HAT MA!ES THEM SIGNIFI"ANT
F 'eign Instit ti na4 In est 's (FI4/s) d 'ing the 4ast ne de*ade ha e =e* &e an integ'a4
pa't . Indian e< it5 &a'2ets> The5 ha e =een an in*'edi=4e s '*e . & ne5 e e' sin*e>The *4 t . the FI4/s is s *h that thei' a''i a4 is anti*ipated with ='eath4ess anDiet5 =5 the
&a'2et p4a5e's> This 'ep tati n . the FI4/s is a we44 ea'ned stat s> The a th 'it5 . these
instit ti ns is e ident .' & the e'5 .a*t that =5 the &e'e news . thei' a''i a4 it is
s ..i*ient . ' the &a'2et t s pp4e&ent itse4. with a d =4e digit g' wth>
7 th .' & the 'eg 4at '5 and pa'ti*ipat '5 standp ints, the *hanges =eing =' ght int
the Indian e< it5 &a'2et w 4d ='ing a s&i4e e en n the .a*e . a g'a e *'iti< e>
Initiati es 4i2e the de&ate'ia4i?ati n . sha'es, int' d *ti n . ' 44ing sett4e&ent, n4ine
t'ading and int' d *ti n . de'i ati es a'e .ew . the path ='ea2ing steps, whi*h ha e
p'esented the Indian &a'2ets n pa' with its g4 =a4 * nte' pa'ts> These steps ha e
assisted the &a'2et in tw wa5s> Fi'st, it st'ea&4ined the *apita4 &a'2et pe'ati ns in a
signi.i*ant &anne' insti44ing the & *h desi'ed * n.iden*e in the &inds . the 'etai4
seg&ent . the =a?aa'> Se* nd45, a e'5 st' ng &essage was t'ans&itted t the in est '
a*' ss the * ntinents, in iting the& t * 4ti ate the i'gin 4and and sha'e the .'i ts> And
that was the =eginning . a 4 ng 4asting *a&a'ade'ie . the FI4/s with the Indian &a'2ets>
As pe' the de.initi n . R7I, an FII is an instit ti n esta=4ished ' in* 'p 'ated tside
India, whi*h p' p ses t &a2e in est&ents in Indian se* 'ities> S *h instit ti ns ha e
=een pe'&itted t in est in Indian se* 'ities &a'2ets sta'ting .' & Septe&=e' ::# when
the then a th 'ities iss ed s ita=4e g ide4ines> The FII/s a'e s =Ce*t t st'ingent
& nit 'ing> The5 a'e 'e< i'ed t 'egiste' with R7I and the SE7I =e. 'e the5 * &&en*e
thei' pe'ati ns>
T' e, the FI4s ha e e&e'ged as a &as* 4ine nit in 'e*ent ti&es> 7 t waitK 4et s gi e
*'edit t ' wn d &esti* instit ti n . ' thei' * nt'i= ti ns, espe*ia445 t the UTI and
4a'ge SU =an2s . ' thei' ine..i*ien*5 and e' *a ti s attit de 'espe*ti e45> The 'es 4tK
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) 0
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
the 4a'gest d &esti* instit ti n, the Unit T' st . India (UTI) g'ad a445 4 st its s pe'i 'it5
n the &a'2ets and s was the *ase with the SU =an2s ' instit ti ns 4i2e LI9> N n UTI
d &esti* & t a4 . nds with dispe'sed e< it5 * 'p s *4 se t Rs>#0,000 *' a'e 5et t
esta=4ish thei' p'esen*e in the &a'2ets> 7esides thei' .as*inati n t wa'ds de=t, the5 ha e
a*hie ed n g'eat * n*4 si n apa't .' & ' nning thei' sh ws> 1ith a d wnwa'd C 'ne5
. the =en*h&a'2 'ates and the &e& '5 . a d t* & = ==4e sti44 .'esh 4i2e a s ' g'ape,
this app' a*h . the & t a4 . nds is pe'haps C sti.ied> These de e4 p&ents ha e he4ped
the FI4/s t esta=4ish thei' i&age, a4=eit indi'e*t45>
FII/s s pp 't the &a'2ets =5 n4 *2ing thei' *hests and 'eC enating the se* nda'5
&a'2ets> e'. '&an*e . the se* nda'5 &a'2et ='ings *hee' t the new iss es &a'2et th s
a44 wing * &panies t 'aise .'esh *apita4> As e ident, a hea4th5 FII a*ti it5 he4ps . ndnew p' Ce*ts and eDpansi ns, *'eating new C =s and t'igge'ing a44 p siti e things that
* &e as a s 'p'ise gi.t> F' & the 9ent'a4 7an2 s p int . iew, FII/s, in est&ents i&pa't
* n.iden*e t the e* n &5 =5 p' iding * shi n in the . '& . . 'eD 'ese' es
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$)
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G ROWTH OF FII: S
The'e has =een * nstant 'ise in the net . 'eign in.4 ws t India> In 'e*ent 5ea's, net FII
in.4 ws int India in*'eased steadi45 th' gh the de*ade . the ::0s t 'ea*h an ann a4 pea2 . USB 0>#! =i44i n in #00$ 0! > 9 & 4ati e45, FII in est&ents as n O*t =e'
" , #00! ha e =een USB ":># =i44i ns>
E e'5 5ea' sin*e FIIs we'e a44 wed t pa'ti*ipate in the Indian &a'2et, FII net
in.4 ws int India ha e =een p siti e, eD*ept . ' ::; :::> This 'e.4e*ts the
st' ng e* n &i* . nda&enta4s . the * nt'5, as we44 as the * n.iden*e . the . 'eign
in est 's in the g' wth with sta=i4it5 . the Indian &a'2et> The 5ea' #00" &a'2ed a
wate'shed in FII in est&ent in India> FIIs sta'ted the 5ea' #00" in a =ig wa5
=5 in esting Rs> :;! *' 'e in %an a'5 itse4.> Meanwhi4e, * 'p 'ate India * ntin ed t
'ep 't g d pe'ati na4 'es 4ts> This, a4 ng with g d &a*' e* n &i* . nda&enta4s,
g' wing ind st'ia4 and se' i*e se*t 's 4ed FIIs t pe'*ei e g'eat p tentia4 . '
in est&ent in the Indian e* n &5> In Ap'i4 #00", p'i*es . * && dities 4i2e stee4 and
a4 &ini & went p, p' pe44ing FII in est&ent in Ma5 #00" t Rs> ",060 *' 'e> A' nd
the sa&e ti&e, M 'gan Stan4e5 9apita4 Inte'nati na4 (MS9I) in its MS9I E&e'ging
Ma'2ets IndeD ga e a weight . $>" pe' *ent t India a& ng the e&e'ging &a'2ets .the w '4d> 9a4ende' 5ea' #00$ ended with net FII in.4 ws . USB:># =i44i n, an a44 ti&e
high sin*e the 4i=e'a4isat i n>
The = 5ant in.4 ws * ntin ed in #00$ 0!> This weight was . 'the' in*'eased t !>: pe'
*ent in Ap'i4, #00$> In #00$ 0!, a.te' 'e e'sing di'e*ti n ='ie.45 d 'ing the pe'i d
Ma5 % ne, FII in.4 ws =e*a&e ' = st again, 4eading t net in.4 ws . USB 0>#!
=i44i n d 'ing the 5ea '> The = 5an*5 * ntin ed in #00! 06, with net in.4 ws
agg'egating t USB ">#6 =i44i n in the .i'st se en & nths p t end O*t =e', #00!>The
net FII in.4 ws int India ha e =een 4ess 4ati4e * &pa'ed t the' e&e'ging
&a'2ets> This sta=i4it5 * 4d =e att'i= ted t se e'a4 .a*t 's
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) #
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St' ng e* n &i* . nda&enta4s and att'a*ti e a4 ati n . * &panies >
I&p' ed 'eg 4at '5 standa'ds, high < a4it5 . dis*4 s 'e and * 'p 'ate
g e'nan*e 'e< i'e&ent, a** nting standa'ds, sh 'tening . sett4e&ent
*5*4es, e..i*ien*5 . *4ea'ing and sett4e&ent s5ste&s and 'is2 &anage&ent
&e*hanis&s>
' d *t di e'si.i*ati n and int' d *ti n . de'i ati es>
St'engthening . the ' pee d 44a' eD*hange 'ate and 4 w inte'est 'ates in the US>
FIIs a** nt . ' a' nd # pe' *ent . the sp t ' *ash &a'2et 4 &es, and in the
a=sen*e . signi.i*ant d &esti* s '*e . 4 ng te'& in est&ent in the &a'2et th' gh
& t a4 . nds and pensi n and p' ident . nds, the FIIs ha e =een the sing4e d &inant
in.4 en*e in the d &esti* &a'2et>
Apa't .' & the *ash &a'2et, the FIIs ha e =een pe'&itted =5 the SE7I and the R7I t
t'ade a4s in the de'i ati es &a'2ets> F ' the p 'p se . 'is2 &anage &ent, the FIIs a'e
t'eated as t'ading &e&=e's in de'i ati es and a'e s =Ce*ted t the sa&e 'is2
&anage&ent &eas 'es as an5 the' t'ading &e&=e'> F ' indeD pti ns and indeD
. t 'es, pe' eD*hange , the'e is a p siti n 4i&it . ' FIIs at the &aDi& & . ! pe'
*ent . the pen inte'est . the 'espe*ti e de'i ati e * nt'a*ts n a pa'ti* 4a'
nde'45ing indeD ' Rs> #!0 *' 'e (AnneD II)> In additi n, the5 a'e a44 wed tin est & 'e, i. it is . ' hedging =a*2ed =5 se* 'ities> In *ase . st *2s, the FII
p siti n 4i&it is the &aDi& & . #0 pe' *ent . the &a'2et wide 4i&it (i. the
&a'2et wide
p siti n 4i&it is 4ess than ' e< a4 t Rs> #!0 *' 'e) ' Rs !0 *' 'e (. ' st *2s in
whi*h the &a'2et wide p siti n 4i&it is g'eate' than Rs> #!0 *' 'e>
The & st p p 4a' de'i ati e p' d *t in India is sing4e st *2 . t 'es whi*h a** nt . 'a4& st 6 pe' *ent . the de'i ati e * nt'a*ts, . 44 wed =5 indeD . t 'es a** nting
. ' nea'45 "0 pe' *ent, and st *2 pti ns and indeD pti ns a** nting . ' the 'est> The
'etai4 in est 's and p' p'ieta'5 t'ading a** nt . ' e'5 high p' p 'ti n . t'ading in
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) "
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de'i ati es &a'2et> The FIIs, n an a e'age, a** nt . ' !> pe' *ent . the
& nth45 t 'n e' in the de'i ati es &a'2et> 3 we e', the FIIs a** nt . ' a' nd
#! pe' *ent . the * & 4ati e pen p siti ns in sing4e st *2 . t 'es> FIIs see& t
ha e =een . 44 wing a hedging st'ateg5 with si& 4tane s in est&ents in *ash
and de'i ati es &a'2et>
The di e'sit5 . FIIs has =een in*'easing with the n &=e' . 'egiste'ed FIIs in
India steadi45 'ising e' the 5ea's (Ta=4e #)> In #00$ 0!, with $! new FIIs
'egiste'ing with Se* 'ities and ED*hange 7 a'd . India (SE7I), as n Ma'*h " ,
#00!, the'e we'e 6;! FIIs 'egiste'ed in India> The na&es . s &e p' &inent FIIs
'egiste'ed d 'ing #00$ 0! a'e 9a4i. 'nia =4i* E&p4 5ees/ Reti'e&ent S5ste&
(9a4 ERS), United Nati ns . ' and n =eha4. . the United Nati ns % int Sta..
ensi n F nd, =4i* S*h 4 Reti'e&ent S5ste& . Miss 'i, 9 && nwea4th .Massa*h setts ensi n Rese' es In est&ent T' st, T'eas 'e' . the State N 'th
9a' 4ina E< it5 In est&ent F nd 4ed T' st, the G' wth F nd . A&e'i*a, and
AIM F nds Manage&ent In*>
In te'&s . * nt'5 . 'igin, the USA t pped the 4ist with a sha'e . $0 pe' *ent . the
n &=e' . FIIs 'egiste'ed in India, . 44 wed =5 UJ/s pe' *ent> Othe'
* nt'ies . signi.i*an*e in te'&s . 'igin . FIIs in esting in India a'e
L De&= 'g, 3 ng J ng, and Singap 'e> In te'&s . net * & 4ati e in est&ents =5FIIs, US =ased FIIs d &inate with #: pe' *ent . the net * & 4ati e FII in est&ents
in India, . 44 wed =5 UJ at pe' *ent> In 'e*ent & nths, E ' pean and %apanese
FIIs ha e sta'ted t e in*e an in*'easing inte'est in India, and . the FIIs that 'egiste'ed
with SE7I in O*t =e' #00$, a signi.i*ant n &=e' =e4 nged t E ' pe and %apan>
These de e4 p&ents ha e he4ped i&p' e the di e'sit5 . the set . FIIs pe'ating in
India>
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) $
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H OW H EALTHY IS FII P ARTI"IPATION
Using a & nth45 data set . ' the pe'i d Ma5 ::" t -e*e&=e' :::, 9ha2'a=a'ti
(#00 ) . nd that the FII net in.4 ws we'e n t n45 * ''e4ated with the 'et 'n in Indiane< it5 &a'2et = t was & 'e 4i2e45 the e..e*t than the *a se . the Indian e< it5 &a'2et
'et 'n> FIIs did n t appea' t =e at an in. '&ati na4 disad antage * &pa'ed t d &esti*
in est 's in the Indian &a'2ets> F 'the'& 'e, the Asian *'isis &a'2ed a 'egi&e shi.t> In
the p st Asian *'isis pe'i d, the 'et 'n in the Indian e< it5 &a'2et t 'ned t t =e the
s 4e d'i e' . the FII in.4 w, whi4e . ' the p'e Asian *'isis pe'i d, the' * a'iates
'e.4e*ting 'et 'n in the' * &peting &a'2ets we'e a4s * ''e4ated with FII net in.4 w>
M 2he'Cee, 7 se and 9 nd (#00#) eDp4 'ed the 'e4ati nship . dai45 FII .4 ws t
the Indian e< it5 &a'2et . ' the pe'i d %an a'5, ::: t Ma5, #00# with tw t5pes .
a'ia=4es> The .i'st t5pe in*4 ded a'ia=4es 'e.4e*ting dai45 &a'2et 'et 'n and its
4ati4it5 ('ep'esenting 'is2) in d &esti* and inte'nati na4 e< it5 &a'2ets, =ased n the
7SE SenseD, S8 !00 and the MS9I 1I, as we44 as &eas 'es . * & e&ent .
'et 'ns in these &a'2ets (the 'e4e ant =etas)> The se* nd t5pe . a'ia=4es, n the the'
hand, we'e essentia445 &a*' e* n &i* 4i2e dai45 'et 'ns n the R pee - 44a' eD*hange
'ate, sh 't te'& inte'est 'ate and indeD . ind st'ia4 p' d *ti n (II )K a'ia=4es that a'e4i2e45 t a..e*t . 'eign in est 's eDpe*tati n a= t 'et 'ns in the Indian e< it5 &a'2et>
The5 disting ished a& ng th'ee 2inds . dai45 FII .4 ws, na&e45, FII .4 ws int the
* nt'5 ' FII p '*hases, FII .4 ws t . the * nt'5 ' FII sa4es, and the net FII
in.4 ws int the * nt'5 ' FII net, and 'e4ated these t the a= e &enti ned a'ia=4es
a4 ng with thei' past hist '5 e' di..e'ent ti&e .'a&es, 4i2e a wee2 ' . 'tnight>
A** 'ding t M 2he'Cee, 7 se and 9 nd (#00#), * nt'a'5 t the gene'a4 pe'*epti n
. FII a*ti ities ha ing a st' ng de& nst'ati n e..e*t and d'i ing the d &esti* st *2
&a'2et in India, e iden*e .' & *a sa4it5 tests s ggests that FII .4 ws t and .' & the
Indian &a'2et tend t =e *a sed =5 'et 'n in the d &esti* e< it5 &a'2et and n t the
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
. 'the' i&p' e&ents in the 'eg 4at '5 s5ste& . the .inan*ia4 se*t '> T . 445 'eap
the =ene.its . *apita4 &a'2et integ'ati n, in India, the p'i&e . * s sh 4d =e n
i&p' ing in est ' * n.iden*e in the e< it5 &a'2et s as t st'engthen the d &esti*
in est ' =ase . the &a'2et, whi*h in t 'n * 4d a*t as a = i4t in * shi n against
p ssi=4e desta=i4i?ing e..e*ts . s dden 'e e'sa4 . . 'eign in.4 ws>
7 se and 9 nd (#00$) 'ep 't that Findings . se e'a4 st dies n FII .4 ws t
e&e'ging e< it5 &a'2ets e' the w '4d ha e sh wn the i&p 'tan*e . .inan*ia4
&a'2et in.'ast' *t 'e s *h as the &a'2et si?e, &a'2et 4i< idit5, t'ading * sts, in. '&ati n
disse&inati n, and 4ega4 &e*hanis&s 'e4ating t p' pe't5 'ights, et*> in att'a*ting . 'eign
p 't. 4i in est&ents int the e&e'ging &a'2ets>
I *#*, # *,
FII/s in est&ent in de=t &a'2et depends n the d &esti* inte'est 'ate is is w '4d
inte'est 'ates, adC sted . ' the eD*hange 'ate & e&ent> Man5 de e4 ping * nt'ies,
in*4 ding India, ha e high n &ina4 inte'est 'ates * &pa'ed t de e4 ped
* nt'ies> F ' eDa&p4e, in India, the 'ate . inte'est n 0 5ea' 9ent'a4 G e'n&ent
= nds was > ! pe' *ent n O*t =e' ", #00!, when the * ''esp nding 'ate n 0 5ea'
gi4ts in the US and %apan we'e $>": pe' *ent and >! pe' *ent, 'espe*ti e45> The
'e4e ant di..e'entia4, h we e', is n t the di..e'en*e =etween the n &ina4 'ates .
inte'est, = t the eD*hange 'ate adC sted di..e'entia4 ' n* e'ed inte'est 'ate pa'it5
* nditi n>
E< it5 de'i ati es a'=it'age * nstit tes a wa5 . ' an5 ne t =tain < asi GOI
= nd 'is24ess p siti ns> As Ja4d ' ( :":) p ts it 1hi4e the'e is n 4i&it, apa't .' &
eDpe*tati ns, t =a*2wa'dati n, i>e> t the eDtent t whi*h the . t 'es p'i*e &a5 .a44
sh 't . the * ''ent p'i*e, the'e is a 4i&it t * ntang , in that the . t 'e p'i*e *ann t
eD*eed the * ''ent p'i*e =5 & 'e than the * st . a'=it'age, i>e> =5 & 'e than the
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$)
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
s & . inte'est p4 s *a''5ing * sts> 1ith the d &esti*/ * st . a'=it'age dete'&ined
=5 d &esti* 'ates . inte'est, FIIs ha e an pp 't nit5 th' gh a'=it'age pe'ati n t
=tain a 'is24ess 'ate . 'et 'n n in est&ent e< a4 t the d &esti* 'ate . inte'est,
whi*h is highe' than the w '4d/ 'ate . inte'est> It appea's that s &e indi'e*t/ de=t
in est&ents in India =5 FIIs ha e =een i&p4e&ented sing *ash and *a''5
a'=it'age> F ' eDa&p4e, i. an FII = 5s In. s5s sha'es n the sp t and si& 4tane s45
se44s the& at a . t 'e date, the pe'ati n gi es a 4 *2ed in 'et 'n e< a4 t the sp t
. t 'es =asis n the In. s5s . t 'es> The 'et 'n is independent . what happens t
In. s5s p'i*e in the . t 'e d 'ing the h 4ding pe'i d> The 'et 'n n this *ash and *a''5
a'=it'age is & *h 4i2e the 'et 'n n a de=t inst' &ent> In #00$, FIIs a** nted . ' a
t ta4 . ">" pe' *ent . e< it5 de'i ati es t 'n e'> A'=it'age a*ti ities w 4d =e a
s =set . this t ta4> This s ggests that a'=it'age =5 FIIs is a 'e4ati e45 s&a44 .a*et .the Indian e< it5 de'i ati es &a'2et>
B 7 '* $ % ;+* ,
India/s =a4an*e . pa5&ents has st'engthened a4& st * ntin s45 sin*e the *'isis .
::0 : , &ain45 =e*a se . a 4i&ited * ''ent a** nt de.i*it & 'e than * &pensated
=5 a = 5ant *apita4 a** nt> The eDte'na4 se*t ' 'esp nded we44 t the 4i=e'a4isati n
. t'ade and * ''ent a** nt, 'e& a4 . < antitati e 'est'i*ti ns and a stead5 'ed *ti n
in * st &s d t5 'ates .' & a pea2 'ate . e' "00 pe' *ent in ::0 : t #0 pe' *ent in
#00$ 0!> The * ''ent a** nt de.i*it as a p' p 'ti n . G- , a.te' a high . "> pe'
*ent in ::0 : , 'e&ained * ntained =e4 w >; pe' *ent . G- nti4 #000 0 , and
a*t a445 t 'ned int a s 'p4 s .' & #00 0#> The st'ength . the *apita4 a** nt, n the
the' hand, 'e.4e*ted the s **ess . a *a ti s app' a*h t 4i=e'a4isati n with an pening
p . the e* n &5 t F-I and FIIs, and 'est'i*ting de=t .4 ws> FII .4 ws ha e &ade an
i&p 'tant * nt'i= ti n t the =a4an*e . pa5&ents>
FII in.4 ws * nt'i= ted USB $0>"" =i44i n =etween ::# :" and Septe&=e', #00! t the
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) ;
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
=a4an*e . pa5&ents> This * ''esp nds t #;>" pe' *ent . the . 'eign eD*hange 'ese' es
. USB $"> =i44i n at end Septe&=e' #00!> In * & 4ati e te'&s, =etween ::# and
-e*e&=e' #00$, FII in est&ent has =een >06 ti&es F-I in.4 ws . USB "$>! =i44i n> In
#00$ 0!, g' ss p 't. 4i .4 ws a& nted t as & *h as >$; pe' *ent . G- and was
>;! ti&es g' ss F-I in.4 ws . USB !>!$ =i44i n>
M st * &&entat 's ag'ee that whi4e p 't. 4i .4 ws a'e s &eti&es * nside'ed 4ati4e,
in India/s eDpe'ien*e, the'e is n signi.i*ant e iden*e . s *h 4ati4it5> 3 we e',
the'e has =een in*'easing * &p4eDit5 in & neta'5 &anage&ent with the t'ip4e
=Ce*ti es . &aintaining 'de'45 * nditi ns in the eD*hange &a'2et, p'i*e sta=i4it5 and
inte'est 'ates> This is 'e4ated t the idea . the i&p ssi=4e t'init5 , whe'e 4i=e'a4i?ati n
. *apita4 .4 ws is di..i* 4t t 'e* n*i4 e with 'de'45 * nditi ns in the eD*hange &a'2etand a t n &5 . d &esti* & neta'5 p 4i*5>
A.te' net FII in.4 ws (net) a e'aging a' nd USB >: =i44i n ann a445 d 'ing ::" :$
t ::6 : , the'e was a sha'p de*4ine in s *h .4 ws in :: :;, and the .4 ws t 'ned
negati e in ::; ::> The de*4ine in FII .4 ws * in*ided with se e'a4 ad e'se eD gen s
de e4 p&ents in the . '& . the East Asian *'isis in &id :: , i&p siti n . e* n &i*
san*ti ns s =se< ent t n *4ea' det nati ns at 2h'an (Ma5 ::;), and the Ja'gi41a' (% ne :::)> a't45 as a 'esp nse t this s4 wd wn in FII in.4 ws, d 'ing ::
:; and ::; ::, < ite a .ew signi.i*ant p 4i*5 de*isi ns we'e ann n*ed> These
in*4 ded enhan*e&ent . agg'egate FII in est&ent 4i&it (Ap'i4 :: ), and pe'&issi n
t FIIs t in est in de=t se* 'ities (Ap'i4 ::;) and e< it5 de'i ati es (% ne ::;)> It
w 4d n t =e in* ''e*t t state that 4i=e'a4isati n . FII p 4i*5, sta'ting .' & ::#,
has in gene'a4 * in*ided with wea2nesses in the =a4an*e . pa5&ents> It is n45 in the
ea'45 pa't . the new *ent '5, when the'e we'e ig ' s signs . d 'a=4e st'ength in the
=a4an*e . pa5&ents, that the . '*e . a'g &ents + independent . =a4an*e .
pa5&ents 'eas ns + in .a ' . en* 'aging FII .4 ws sta'ted t get tested>
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) :
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
Si& 4tane s45, h we e', 'athe' than =eing a * n enient t 4 . ' .inan*ing the =a4an*e
. pa5&ents de.i*it, FII .4 ws sta'ted t * &p4i*ate the p 's it . the t'ip4e
=Ce*ti es . &aintaining 'de'45 * nditi ns in the eD*hange &a'2et, p'i*e sta=i4it5
and inte'est 'ates> A.te' the G Ca'at ea'th< a2e (%an a'5 #000), te'' 'ist atta*2 n
the Indian a'4ia&ent (-e*e&=e' #00 ), the iss e . t'a e4 ad is 'ies =5 1este'n
nati ns d e t tense sit ati n in the * nt'5/s neigh= 'h d (Ma5 % ne #00#), and a
se e'e d' ght (% 45 A g st #00#), with e'a44 g' wth . e' ; pe' *ent, *apita4
&a'2ets =e*a&e hea i45 = 44ish in #00" 0$> 7 5ed =5 the p siti e senti&ents, FII
in.4 ws sh t p t an np'e*edented USB:>:! =i44i n in #00" 0$> 1hi4e the
G e'n&ent . India iss ed Ma'2et Sta=i4isati n 7 nds t the R7I t & p p eD*ess
4i< idit5 .4 wing in th' gh the =a4an*e . pa5&ents, < esti ns 'ega'ding the need t
en* 'age/ FII .4 ws sta'ted t =e as2ed>
P # &'&% $#; $ *,
In 'e*ent ti&es, the an n5&it5 a.. 'ded =5 the N ' te has 4ed t th'ee * n*e'ns a= t
the desi'a=i4it5 . Ns> Fi'st, with Ns iss ed t a'i s t5pes . entities a=' ad, the
identit5 . the a*t a4 in est ' need n t ne*essa'i45 =e 2n wn t the 'eg 4at '5 = dies>
The in est ' * 4d =e indi id a4 ' * 'p 'ate in est 's wh a'e n t s =Ce*t t Indian
4aws> This has gi en 'ise t * n*e'ns that s &e . the & ne5 * &ing int the
&a'2et ia Ns * 4d =e the na** nted wea4th . s &e 'i*h Indians *a& .4aged
nde' the g ise . FII in est&ent> The & ne5 &ight e en =e tainted and 4in2ed with
s *h i44ega4 a*ti ities as s& gg4ing and d' g ' nning> Se* nd, * n*e'ns ha e a4s =een
'aised a= t the p tentia4 . ' enhan*ed 4ati4it5 in the Indian &a'2ets with s =stantia4
iss an*es@'ede&pti ns . these de'i ati e inst' &ents a=' ad> The h 4de's . Ns
&a5 =e indi id a4 entities, and as pp sed t * 44e*ti e@p 4ed in est&ent 4i2e
& t a4 . nds, &a5 indi id a445 dete'&ine ent'5 and eDit> Thi'd, hedge . nds &a5 =e
sing the de i*es . Ns and s = a** nts . the FIIs t p4a5 in the Indian &a'2et>
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) #0
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
T he iss e was eDa&ined =5 the Minist'5 . Finan*e in * ns 4tati n with R7I and SE7I>
F 44 wing this * ns 4tati n, it was de*ided that with e..e*t .' & Fe=' a'5 ", #00$,
e'seas de'i ati e inst' &ents s *h as Ns against nde'45ing Indian se* 'ities *an
=e iss ed n45 t 'eg 4ated entities and . 'the' t'ans.e's, i. an5, . these
inst' &ents *an a4s =e t the' 'eg 4ated entities n45> FIIs@s = a** nts ha e
=een 'e< i'ed t ens 'e that n . 'the' d wnst'ea& iss an*e . s *h de'i ati e
inst' &ents is &ade t n'eg 4ated entities> The FIIs iss ing s *h de'i ati e
inst' &ents a'e the'e. 'e 'e< i'ed t eDe'*ise d e di4igen*e and &aintain * &p4ete detai4s
. the in est 's, =ased st'i*t45 n 2n w 5 ' *4ient (JP9) p'in*ip4es> SE7I has
indi*ated that the eDisting n n e4igi=4e Ns wi44 =e pe'&itted t eDpi'e ' t =e w nd
d wn n &at 'it5, ' within a pe'i d . ! 5ea's, whi*he e' is ea'4ie'> 7esides, 'ep 'ting
'e< i'e&ent n a 'eg 4a' =asis has =een i&p sed n a44 the FIIs>
It is pe'tinent t n te that in Asia, 3 ng J ng, Singap 'e, J 'ea and Taiwan att'a*t
signi.i*ant inte'nati na4 in est ' attenti n th' gh the &edi & . .. sh 'e de'i ati e
p' d *ts> In these . ' * nt'ies@'egi ns, the'e is s =stantia4 . 'eign instit ti na4
in est&ent, and the'e is n p' hi=it i n ' 'est'i*t i n n .. sh 'e de'i ati e a*ti ities
. . 'eign instit ti na4 in est 's> In 'esp nse t &a'2et &anip 4ati n * n*e'ns , in
-e*e&=e' :::, Taiwan Se* 'ities and F t 'es 9 &&issi n had a&ended its FII
'eg 4ati ns t 'e< i'e pe'i di* dis*4 s 'e =5 FIIs . a44 .. sh 'e de'i ati e a*ti ities
4in2ed t 4 *a4 sha'es, = t this 'e< i'e&ent was s =se< ent45 'e& ed in % ne #000>
F' & the sta't itse4., the ai& . the G e'n&ent . India s FII p 4i*5 was t a id h t
(sh 't te'& and e'45 spe* 4ati e) and n*4ean (gene'ated .' & i44ega4 = sinesses
4i2e d' g t'a..i*2ing et*>) & nies * &ing int the * nt'5> In ::", SE7I, in the * nteDt
. 'egist'ati n t *4ients, had 'eite'ated t the G e'n&ent the need t ha e
instit ti na4 and =' ad =ased *4ients@. nds> It was a4s &enti ned that the . nds * &ing
int India sh 4d =e *4ean > T wa'ds this end, the 'e< i'e&ent . s = a** nts =eing
=' ad =ased was . 44 wed .' & the e'5 =eginning> It was .e4t that =' ad =ased s =
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) #
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
a** nts we'e 4ess 4i2e45 t ='ing in h t ' n*4ean & nies int India> T as*e'tain
that the s = a** nts we'e indeed =' ad =ased and we'e instit ti na4
in est 's@'ep ted . 'eign in est 's, in the 'e ised app4i*ati n . '& . ' FII Regist'ati n
iss ed in Ap'i4 ::" in * ns 4tati n with R7I, the . 44 wing in. '&ati n was s ght with
'espe*t t *4ients . the FIIs
Na&e . 94ient (S = a** nt)
-ate and p4a*e . in* 'p 'ati n and * nstit ti n
1hethe' *4ient is 'egiste'ed with 'eg 4at '5 agen*5 and detai4s the'e .
O=Ce*ti es and p'in*ip4e a*ti ities . *4ients
N &=e' and t5pes . sha'eh 4de's
V 4 &e . assets
The 5a'dsti*2 ad pted . ' =' ad =asedness . a . nd was a &ini& & !0 in est 's with n
in est ' h 4ding & 'e than ! pe' *ent . the sha'es ' nits . the . nd> The C dg&ent n
whethe' a s = a** nt was =' ad =as ed .ten 'e< i'ed * nside'a=4e * ''esp nden*e
=etween SE7I and the * n*e'ned FII>Se* 'ities and ED*hange 7 a'd . India
(F 'eign Instit ti na4 In est 's) Reg 4ati ns, ::! iss ed =5 SE7I as we44 as p'a*ti*es
and p' *ed 'es in * ns 4tati n with R7I and the Minist'5 . Finan*e we'e *4ea'45 g ided
=5 the p'in*ip4e . a44 wing n45 =' ad =ased . nds en n*iated in the G e'n&ent
g ide4ines>
H$ +$ *;
'i*es 'ea*t t new in. '&ati n and *apita4 swit*hes .' & ne a*ti it5 tan the', s &eti&es a*' ss nati na4 = nda'ies and * ''en*5 ? nes> FIIs ha e
* &&and e' * nside'a=4e . nds, and 4 &es . FII in.4 ws *an =e s =stantia4 in
'e4ati n t the si?e . the *apita4 &a'2ets in de e4 ping * nt'ies> The w ''ies a= t
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) ##
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
4ne'a=i4it5 . de e4 ping * nt'5 *apita4 &a'2ets t FII in.4 ws *an =e *ateg 'ised
int th'ee pa'ts a= t h t & ne5/ .4 wing t and *'eating t '& i4 in = th se* 'ities
and . 'eign eD*hange &a'2ets, a= t t & *h * &ing in, and 4eading t pwa'd
p'ess 'e n eithe' the eD*hange 'ate . the d &esti* * ''en*5 ' p'i*es ' = th, and
a= t . 'eigne's/ *apt 'ing a 4a'ge pa't . the &a'2ets in se* 'ities> Tw spe*i.i* .ea's
a= t t '& i4 *a sed =5 FIIs *ent'e a' nd the p' =4e&s . he'ding + whe'e &an5
FIIs &a5 t'ade in si&i4a' wa5s + and p siti e .eed=a*2 t'ading whe'e FIIs = 5
a.te' p siti e 'et 'ns and se44 a.te' negati e 'et 'ns, th s eDa*e'=ating &a'2et 4ati4it5>
A.te' the Asian *'isis . :: , the p' =4e& . 4ati4it5 has =een a &atte' .
& *h dis* ssi n> In .a*t, Ma4a5sia i&p sed se e'e *apita4 * nt' 4s n O*t =e' , ::;
t thwa't the pe'*ei ed desta=i4i?ing a*ti ns . . 'eign spe* 4at 's> FII in.4 ws a'e p p 4a'45 des*'i=ed as h t & ne5 , =e*a se . the he'ding =eha i ' and
p tentia4 . ' 4a'ge *apita4 t.4 ws> 3e'ding =eha i ', with a44 the FIIs t'5ing t
eithe' n45 = 5 ' n45 se44 at the sa&e ti&e, pa'ti* 4a'45 at ti&es . &a'2et st'ess,
*an =e 'ati na4> 1ith pe'. '&an*e 'e4ated .ees . ' . nd &anage's, and pe'. '&an*e
C dged n the =asis . h w the' . nds a'e d ing, the'e is g'eat in*enti e t s ..e'
the * nse< en*es . =eing w' ng when e e'5 ne is w' ng, 'athe' than ta2ing the 'is2
. =eing w' ng when s &e the's a'e 'ight> The in*enti e st' *t 'e high4ights thedange' . a * nt'a'ian =et g ing w' ng and &a2es it & *h & 'e se e'e than
pe'. '&ing =ad45 a4 ng with & st the's in the &a'2et> It n t n45 4eads t 'e4ian*e
n the sa&e in. '&ati n as the's = t a4s 'ed *es the p4anning h 'i? n t a
'e4ati e45 sh 't ne> Va4 e at Ris2 & de4s . 44 wed =5 FIIs &a5 desta=i4i?e &a'2ets
=5 4eading t si& 4tane s sa4e =5 a'i s FIIs, as =se' ed in R ssia and L ng
Te'& 9apita4 Manage&ent ::; (LT9M) *'isis> EDt'ap 4ati e eDpe*tati ns ' t'end
*hasing 'athe' than . * sing n . nda&enta4s *an 4ead t desta=i4i?ati n> M e&ents
in the weightage atta*hed t a * nt'5 =5 indi*es s *h as M 'gan Stan4e5 9 nt'5
IndeD (MS9I) ' Inte'nati na4 Finan*e 9 'p 'ati n (1) (IF9) a4s 4eads t en &asse
shi.t in FII p 't. 4i s>
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) #"
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
The eDtent t whi*h FIIs a..e*t the * st . *apita4 is 'e.4e*ted in a * && n sense
C dg&ent a= t whethe' st *2 p'i*es w 4d =e 4 we' i. a44 FIIs eDited the
* nt'5> In an a th 'itati e e&pi'i*a4 w '2 n the s =Ce*t, 7e2ae't and 3a' e5
(#000) in estigate the a4idit5 . the &an5 pe'*epti ns . the ' 4e . . 'eign spe* 4at 's
in e&e'ging e< it5 &a'2etsQ&an5 . whi*h a'e negati e> The5 4 2 at the a'i s wa5s
. 'eigne's *an a**ess e&e'ging &a'2et e< it5(A-Rs, 9 nt'5 F nds, ' di'e*t
pa'ti*ipati n in the 4 *a4 &a'2et) and t'5 t assess the i&pa*t n eDpe*ted 'et 'ns,
4ati4it5, =eta, and * ''e4ati n> The5 * n*4 de One . the &aC ' * n*4 si ns .
' w '2 is that the *apita4 &a'2et integ'ati n p' *ess 'ed *es the * st . *apita4 = t
pe'haps =5 4ess than we eDpe*ted> In .a*t, the'e a'e 'eas ns t =e4ie e that the e..e*t
we &eas 'e is pwa'd45 =iased> 1e ha e ta2en 4i=e'a4i?ati ns as an eD gen se ent, whe'eas p 4i*5&a2e's w 4d p' =a=45 *h se t 4i=e'a4i?e when it is & st
ad antage s t d s > A4th gh p 4i*5 end geneit5 w 4d s ggest ' esti&ates a'e
=iased pwa'd (see 3en'5 (#000) . ' a si&i4a' p int), the e..e*t we &eas 'e is 4ess than
ne pe'*ent> The5 .ind s &e s ggesti e e iden*e that 4i=e'a4i?ati n . e< it5 &a'2ets
t . 'eigne's 4eads t de*4ine (a4=eit s&a44e' than p'edi*ted in the '5 ) in the * st .
*apita4> The5 a4s .ind e iden*e that in est&ent as a p' p 'ti n . G- in*'eases
signi.i*ant45 with 4i=e'a4isati n>
On the < esti n . 4ati4it5, 7e2ae't and 3a' e5 (#000) .ind a s&a44 = t
& st45 insigni.i*ant in*'ease in the 4ati4it5 . st *2 'et 'ns . 44 wing *apita4 &a'2et
4i=e'a4i?ati ns>/ The5 * n*4 de M 'e e', the e..e*t =e* &es negati e when
p tentia445 * n* ''ent & e&ents in the * nt' 4 a'ia=4es a'e ta2en int a** nt>
Inte'esting45, the'e is n45 a s&a44 in*'ease in * ''e4ati n with the w '4d &a'2et
'et 'n> Man5 . 'eign in est 's a'e att'a*ted t e&e'ging &a'2ets . ' the
di e'si.i*ati n =ene.its> A4th gh * ''e4ati ns in*'ease a.te' &a'2ets pen p, the
&agnit de . the in*'ease is n4i2e45 t dete' in est 's see2ing di e'si.i*ati n>
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) #$
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
7e2ae't and 3a' e5 (#00#) .ind & *h . the dis* ssi n . in*'eased 4ati4it5 . *apita4
.4 ws p st 4i=e'a4i?ati n (see Stig4it? (#000)), in &an5 wa5s, as dd > The e&e'ging
* nt'ies sta't with 4itt4e ' n *apita4 .4 ws and & e t an en i' n&ent (p st
4i=e'a4i?ati n) with signi.i*ant *apita4 .4 ws whi*h a'e, as eDpe*ted, s =Ce*t t p 't. 4i
'e=a4an*ing> 9 nse< ent45, it is n &5ste'5 that the 4ati4it5 . *apita4 .4 ws
in*'eases > A** 'ding t the& In .a*t, the seg&entati n & de4 p'edi*ts that
4ati4it5 sh 4d spi2e a' nd the ti&e . &a'2et 4i=e'a4i?ati n, = t sh 4d
then s =side n*e the 4a'ge *apita4 in.4 w has ** ''ed> O. * 'se, the'e is a4wa5s
the w ''5 that p 't. 4i .4 ws a'e n t as sti*25 as . 'eign di'e*t in est&ents and
&a5 disappea' at a whi&, *a sing a *'isis in the p' *ess > 3 we e', the5 .ind that, in
te'&s . * e..i*ient . a'iati n, *apita4 .4 ws a'e & 'e 4ati4e in de e4 ped &a'2ets
than in e&e'ging &a'2ets>
T'aditi na445, de e4 ping * nt'ies p4ag ed =5 p' =4e&s . .inan*ing the de.i*its in the
=a4an*e . pa5&ents ha e =een wa'5 . FIIs =e*a se . the p tentia4 . ' 4a'ge *apita4
t.4 ws gene'ated =5 thei' he'ding =eha i '> 3 we e', . 4ate, s &e de e4 ping
* nt'ies 4i2e 9hina and India ha e a4s had a p' =4e& . si?ea=4e s 'p4 ses n the
=a4an*e . pa5&ents 4eading t pwa'd p'ess 'e n the eD*hange 'ate ' n
d &esti* p'i*es th' gh eD*essi e 4i< idit5 *'eati n>
The .ea' . . 'eigne's *apt 'ing the se* 'ities &a'2ets has gen ine * ntent n45 i. s *h
. 'eigne's a*t as in *ah ts t desta=i4ise the e* n &5> Othe'wise, .ea' . . 'eigne's
pe' se a'g es in .a ' . =anning n t n45 FIIs = t F-Is and i&p 'ts . &e'*handise as
we44>
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) #!
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FII: S < MOVING THE MAR!ET
't. 4i in est&ent .4 ws .' & ind st'ia4 * nt'ies ha e =e* &e in*'easing45 i&p 'tant
. ' de e4 ping * nt'ies in 'e*ent 5ea's> E e' sin*e the pening p . the Indian e< it5&a'2ets t . 'eigne's, FII in est&ents ha e steadi45 g' wn .' & a= t Rs> #!:!>"0 *' in
-e*e&=e' ::" t a * & 4ati e in est&ent . e' Rs> !;, 66> 0 *' ti44 -e*e&=e' "0,
#00#, * nstit ting ;>#6H . the . 'eign eD*hange assets . Rs> ",# , 0; *' as n
-e*e&=e' # , #00#>
The ana45sis n dai45 net in.4 ws . FII/s and & e&ent . 7SE senseD .' & %an a'5
#00 ti44 A g st #00# sh ws a p siti e * ''e4ati n t the eDtent . 6">"0H> In this st d5,
the independent a'ia=4e ' aDis was ta2en as FII net dai45 in.4 ws and dai45 *4 sing
a4 e . 7SE senseD as the P ' dependent a'ia=4e> This has esta=4ished a *4ea' * t
* ''e4ati n =etween FII in est&ents and the & e&ent . senseD, with the 4atte' 'ising in
p' p 'ti n t the p '*hases . FII/s and a4s de*4ining in t ne with FII sa4es> A4th gh
the'e a'e a= t !00 'egiste'ed FII/s, the n &=e' . a*ti e pe'at 's is a= t !0, wh
ha e in ested in a= t 00 * &panies with = 42 . the in est&ents =eing * n*ent'ated in
a= t "0 s*'ips> It is, the'e. 'e, n t di..i* 4t . ' FII/s, a*ting in ha'& n5 t di'e*t the
&a'2et with thei' * & 4ati e net in est&ent . a= t Rs> !; :>!0 *' a** nting . '
:> "H . the t ta4 &a'2et *apita4i?ati n> >
This t'end . * ''e4ati n . Indian e< it5 &a'2ets t that . FII/s in est&ents th gh
en* 'aging, has t =e t'eated *a ti s45> A4th gh the in est&ents ha e p' ided with
the & *h needed 4i< idit5 and depth in the &a'2ets, the ' 4e p4a5ed =5 the .45 =5 night
pe'at 's in *'eating pani* in s &e . the Asian e* n &ies is a 'is2 .a*ed =5 Indian
&a'2ets> 't. 4i .4 ws a'e n t 'i s45 4ati4e * &pa'ed t the' . '&s . *apita4
.4 ws, as FII/s s a445 p 44 =a*2 p 't. 4i in est&ents at the s4ightest hint . t' =4e in
the h st * nt'5 .ten 4eading t disast' s * nse< en*es t its e* n &5> FII/s ha e =een =4a&ed . ' eDa*e'=ating s&a44 e* n &i* p' =4e&s in a * nt'5 =5 &a2ing 4a'ge and
* n*e'ted withd'awa4s at the .i'st sign . e* n &i* wea2ness> 3 we e', R7I and Se=i
has =een p' dent en gh in en. '*ing st'i*t g ide4ines . ' FII/s ente'ing India and
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) #6
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* nt' 44ing the 'epat'iati n . the in est&ent>
E e' sin*e the5 ente'ed India in ::", the &a'2et has & ed n whe'e =etween ::" and
n w> -espite an e' = 'dened e* n &5 and in.'ast' *t 'e = tt4ene*2s, * &panies 4i2e
RIL, 3LL, 3-F9, In. s5s, Ran=aD5 and -'> Redd5 s, ha e gi en * nsistent45 eD*e44ent
pe'. '&an*e e' the 5ea's and this has en* 'aged FII/s t in est in the st *2s . these
* &panies whi*h h 4ds a &aC ' weightage in senseD> F ' g4 =a4 . nd &anage's, t p
d wn is the p'e.e''ed app' a*h as thei' p 't. 4i s * nsist . se* 'ities a*' ss &an5
&a'2ets, whi*h &a2e it t * &=e's &e t . 44 w a = tt & p st'ateg5 in ea*h &a'2et>
The'e ha e =een . ' epis des . 4ne'a=i4it5 in India, whi*h a'e negati e
sh *2s a..e*ting the e* n &5, and in.4 en*ing the =eha i ' . in est 's> These a'e
the East Asian *'isis in :: , the 2h'an N *4ea' eDp4 si n (Ma5 ::;) and the
attendant san*ti ns, the st *2 &a'2et s*a& . ea'45 #00 , and the 74a*2 M nda5 .Ma5 , #00$>
FII in est&ent =eha i ' d 'ing these . ' spe*i.i* e ents indi*ates that these e ents did
a..e*t the =eha i ' . the . 'eign p 't. 4i in est 's> 7 t, these e ents did a..e*t
d &esti* in est 's/ =eha i ' as we44> The *'iti*a4 < esti n t as2 is whethe' the'e
was an5 pe'*epti=4e di..e'en*e, pa'ti* 4a'45 with a =ias t wa'ds desta=i4i?ati n, in the
=eha i ' . the FIIs is is that . d &esti* in est 's
FII B* &$=# & * *#+ $ P$> # N='7* # E8%7$,&$
MONTH BSE INDE? FOR THE
MONTH
FII INVESTMENTS
(R, & '#$#*,)
Ma5 ::; ": >:! !! >$!% ne ::; "" >$: ;:6>"0% 45 ::; "# > " 0$>6;A g st ::; #:;;>$0 ":0>;#Septe&=e' ::; "0;:>;; >0:O*t =e' ::; #;66>!! !!#>$6
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) #
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FII B* &$=# #$= / B7 '> M$ / ;@ M ; 1 @ 2004
MONTH BSE INDE? FOR THE
MONTH
FII INVESTMENTS
(R, & '#$#*,)
Ma5 #00$ !#0$>6! " ! >#:% ne #00$ $;#">; ! >00% 45 #00$ $: #>;; #:#>;"
These eDpe'ien*es sh w that FII t.4 w . as & *h as a =i44i n d 44a's in a & nth
+ whi*h * ''esp nds t an a e'age . B$0 &i44i n ' Rs> 0 *' 'e pe' da5 + has
ne e' =een =se' ed> These a4 es + Rs> 0 *' 'e pe' da5 + a'e s&a44 when * &pa'ed
with e< it5 t 'n e' in India> In *a4enda' #00$, g' ss t 'n e' n the e< it5 &a'2et .
Rs>;; 4a2h *' 'e * ntained Rs>! 4a2h *' 'e . g' ss t 'n e' =5 FIIs> This s ggests
that as 5et, FIIs a'e a s&a44 pa't . the Indian e< it5 &a'2et> T'ansa*ti ns =5 FIIs .
Rs>! 4a2h *' 'e in a 5ea' &ight ha e =een 4a'ge in ::", = t the s **ess . a 'adi*a4
new &a'2et design in the Indian e< it5 &a'2et ha e 4ed t en '& s g' wth .
4i< idit5 and &a'2et e..i*ien*5 n the e< it5 &a'2et> Th' gh this, India/s a=i4it5 t
a=s '= s =stantia4 t'ansa*ti ns n the e< it5 &a'2et appea's t =e in p4a*e>
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) #;
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inte'&ediati n, and 4ead t spi44 e's . h &an *apita4 =5 eDp sing Indian pa'ti*ipants
t & de'n .inan*ia4 te*hni< es, and inte'nati na4 =est p'a*ti*es and s5ste&s>
St'engthening * 'p 'ate g e'nan*e
- &esti* instit ti na4 and indi id a4 in est 's , sed as the5 a'e t the ng ing
p'a*ti*es . Indian * 'p 'ates, .ten a**ept s *h p'a*ti*es , e en when these d n t
&eas 'e p t the inte'nati na4 =en*h&a'2s . =est p'a*ti*es> FIIs , with thei'
ast eDpe'ien*e with & de'n * 'p 'ate g e'nan*e p'a*ti*es, a'e 4ess t 4e'ant .
&a4p'a*ti*e =5 * 'p 'ate &anage's and wne's (d &inant sha'eh 4de')> FII
pa'ti*ipati n in d &esti* *apita4 &a'2ets .ten 4ead t ig ' s ad *a*5 . s nd
* 'p 'ate g e'nan*e p'a*ti*es, i&p' ed e..i*ien*5 and =ette' sha'eh 4de' a4 e>
I&p' e&ents t &a'2et e..i*ien*5
A signi.i*ant p'esen*e . FIIs in India *an i&p' e &a'2et e..i*ien*5 th' gh tw
*hanne4s> Fi'st, when ad e'se &a*' e* n &i* news, s *h as a =ad & ns n,
nsett4es &an5 d &esti* in est 's, it &a5 =e easie' . ' a g4 =a445 di e'si.ied
p 't. 4i &anage' t =e & 'e dispassi nate a= t India s p' spe*ts, and engage insta=i4ising t'ades> Se* nd, at the 4e e4 . indi id a4 st *2s and ind st'ies, FIIs &a5 a*t
as a *hanne4 th' gh whi*h 2n w4edge and ideas a= t a4 ati n . a .i'& ' an
ind st'5 *an & 'e 'apid45 p' pagate int India> F ' eDa&p4e, . 'eign in est 's we'e
'apid45 a=4e t assess the p tentia4 . .i'&s 4i2e In. s5s, whi*h a'e p'i&a'i45 eDp 't
'iented, app45ing a4 ati n p'in*ip4es that p'e ai4ed tside India . ' s .twa'e se' i*es
* &panies>
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) "0
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"$, ,
3e'ding and p siti e .eed=a*2 t'ading
The'e a'e * n*e'ns that . 'eign in est 's a'e *h' ni*a445 i44 in. '&ed a= t India, and
this 4a*2 . s nd in. '&ati n &a5 gene'ate he'ding (a 4a'ge n &=e' . FIIs = 5ing '
se44ing t gethe') and p siti e .eed=a*2 t'ading (= 5ing a.te' p siti e 'et 'ns, se44ing
a.te' negati e 'et 'ns)> These 2inds . =eha i ' *an eDa*e'=ate 4ati4it5, and p sh
p'i*es awa5 .' & .ai' a4 es> FIIs/ =eha i ' in India, h we e', s .a' d es n t
eDhi=it these patte'ns> Gene'a445, * nt'a'5 t he'ding/, FIIs a'e seen t =e in 4 ed in
e'5 4a'ge = 5ing and se44ing at the sa&e ti&e> G 'd n and G pta (#00") .ind
e iden*e against p siti e .eed=a*2 t'ading with FIIs = 5ing a.te' negati e 'et 'ns
and i*e e'sa>
7 4ne'a=i4it5
The'e a'e * n*e'ns that in an eDt'e&e e ent, the'e *an =e a &assi e .4ight . . 'eign
*apita4 t . India, t'igge'ing di..i* 4ties in the =a4an*e . pa5&ents .' nt> India s
eDpe'ien*e with FIIs s .a', h we e', s ggests that a*' ss epis des 4i2e the 2h'an =4asts, ' the #00 st *2 &a'2et s*anda4, n *apita4 .4ight has ta2en p4a*e> A =i44i n
' & 'e . US d 44a's . p 't. 4i *apita4 has ne e' 4e.t India within the pe'i d .
ne & nth> 1hen C Dtap sed with India s en '& s * ''ent a** nt and *apita4
a** nt .4 ws, this s ggests that the'e is 4itt4e e iden*e . 4ne'a=i4it5 s .a'>
s si=i4it5 . ta2ing e' * &panies
1hi4e FIIs a'e n '&a445 seen as p 'e p 't. 4i in est 's, with t inte'est in * nt' 4,
p 't. 4i in est 's *an **asi na445 =eha e 4i2e F-I in est 's, and see2 * nt' 4 .
* &panies that the5 ha e a s =stantia4 sha'eh 4ding in> S *h t* &es, h we e', &a5
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) "
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
n t =e in* nsistent with India s < est . ' g'eate' F-I> F 'the'& 'e, SE7I s ta2e e'
* de is in p4a*e, and has . n*ti ned .ai'45 we44, ens 'ing that a44 in est 's =ene.it
e< a445 in the e ent . a ta2e e'>
9 &p4eD ities . &neta' 5 &anage&ent
A p 4i*5&a2e' t'5ing t design the idea4 .inan*ia4 s5ste& has th'ee =Ce*ti es> The
p 4i*5 &a2e' wants * ntin ing nati na4 s e'eignt5 in the p 's it . inte'est 'ate,
in.4ati n and eD*hange 'ate =Ce*ti esK .inan*ia4 &a'2ets that a'e 'eg 4ated, s pe' ised
and * shi nedK and the =ene.its . g4 =a4 *apita4 &a'2ets> Un. 't nate45, these th'ee
g a4s a'e in* &pati=4e> The5 . '& the i&p ssi=4e t'init5> India s penness t
p 't. 4i .4 ws and F-I has e..e*ti e45 &ade the * nt'5 /s *apita4 a** nt * n e'ti=4e. ' . 'eign instit ti ns and in est 's> The p' =4e&s . & neta'5 &anage&ent in
gene'a4, and &aintaining a tight eD*hange 'ate 'egi&e, 'eas na=4e inte'est 'ates and
& de'ate in.4ati n at the sa&e ti&e in pa'ti* 4a', ha e * &e t the . 'e in 'e*ent
ti&es> The p' =4e& sh wed p in te'&s . e'5 4a'ge . 'eign eD*hange 'ese' e in.4 ws
'e< i'ing * nside'a=4e ste'4isati n pe'ati ns =5 the R7I t &aintain sta=4e
&a*' e* n &i* * nditi ns> The G e'n&ent had t int' d *e a Ma'2et Sta=i4isati n
S*he&e (MSS) .' & Ap'i4 , #00$>
1ith the . 'eign eD*hange in ested in high45 4i< id and sa.e . 'eign assets with 4 w
'ates . 'et 'n, and pa5&ent . a highe' 'ate . inte'est n the t'eas '5 =i44s iss ed nde'
MSS, ste'i4isati n in 4 es a * st> 1ith a 'apid 'ise in . 'eign eD*hange 'ese' es, and
the need . ' ha ing an MSS =ased ste'i4isati n in 4 ing * sts, < esti ns ha e
=een 'aised a= t the desi'a=i4it5 . en* 'aging & 'e . 'eign eD*hange in.4 ws
in gene'a4 and FII in.4 ws in pa'ti* 4a'> 1hi4e the'e is indeed the iss e . ti&ing the
p 4i*5 . en* 'age&ent app' p'iate45, t a id the pit.a44s . th' wing the =a=5 with
the =ath wate', the'e *an n t =e a t 'na' nd .' & the a wed p 4i*5 . g'ad a4
4i=e'a4i?ati n, in*4 ding the *ap ita4 a** nt> A44 & de'n &a'2et e* n &ies ha e
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) "#
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
e 4 ed p 4i*ies t 'e* n*i4e p' dent & neta'5 &anage&ent with the =ene.its . a
4i=e'a4 *apita4 a** nt> The'e is n s* pe . ' an5 di..iden*e in India a4s & ing in
the sa&e di'e*ti n>
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) ""
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
ISSUES AND " HALLENGES F A"ING FII: S IN I NDIA
9 n*ent'ati n and Li< idit5
The =iggest * n*e'n p4ag ing Indian &a'2ets is that . * n*ent'ati n and 4i< idit5> The'ea'e n45 a hand. 4 . st *2s that ha e the 2ind . 4i< idit5 . ' . 'eign in est 's t ta2e
signi.i*ant p siti ns> Indian &a'2ets a'e * n*ent'ated in e'5 .ew st *2s in te'&s .
4 &es t 'n e'> The sha'e . t p 0 & st a*ti e indeD st *2s in t 'n e' is a= t ! H
in Indian &a'2ets, whi4e it is in the 'ange . t # H . ' * nt'ies in*4 ding 9hina,
Thai4and, Taiwan and J 'ea> A4s , p' & te's h 4dings a'e high whi*h ha&pe's 4i< idit5>
75 the end . Ma'*h #00#, a e'age p' & te' h 4dings in a44 4isted * &panies we'e
a' nd $ H>
Ma'2et 9apita4i?ati n t G- Rati
The se* nd &aC ' * n*e'n is &a'2et *ap t G- 'ati in India, whi*h is < ite 4 w at
"#H> This i&p4ies that n45 a s&a44 .'a*ti n . Indian = siness is *apt 'ed in st *2s
&a'2ets and s &e . the &aC ' = sinesses a'e n t e en a ai4a=4e . ' in esting> 1hi4e in
de e4 ped e* n &ies this 'ati is t the eDtent . #0H> Asian * nt'ies 4i2e 3 ng J ng,
9hina, J 'ea and Taiwan ha e a 'ati . & 'e than !0H> This is =e*a se . in*'eased
g e'n&ent wne'ship in a'i s seg&ents> F ' eDa&p4e Indian Rai4wa5s, st, State
R ad T'ansp 't 9 'p 'ati ns, with thei' si?e and = siness *'edentia4s *an ignite a 4 t .
in est ' inte'est> The'e a'e &aC ' p'i ate p4a5e's, whi*h a'e *4 se45 he4d and n4ess a44
these * &e int the st *2 &a'2et . 4d, pp 't nities wi44 =e 4i&ited>
9 'p 'ate G e'nan*e and -is*4 s 'e N '&s
The'e a'e * n*e'ns n the * 'p 'ate g e'nan*e standa'ds as we44> -espite a** nting
s*anda4s in US, g4 =a4 in est 's ha e & 'e .aith in the US 'eg 4at '5 s5ste& and
* 'p 'ate g e'nan*e standa'ds> Un4i2e d &esti* . nd &anage's wh .ee4 'eas na=45
* n.ident =e*a se . thei' 'eg 4a' inte'a*ti n with the &anage&ents, . 'eign in est 's d
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) "$
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
.ee4 < ite inse* 'e> F ' a . nd &anage' &anaging . nds .' & his head< a'te's in the US,
the < ant & . in est&ent in Indian * &panies &a5 n t 'ea445 C sti.5 the * sts .
& nit 'ing the& n a 'eg 4a' =asis> St *2s t'ading at E & 4tip4e . # ' " in spite .
thei' stead5 .inan*ia4 pe'. '&an*e, 'aises s spi*i n a= t the < a4it5 . &anage&ent and
in this 'espe*t g4 =a4 in est 's 4 2 at e&e'ging &a'2ets 4i2e J 'ea and Taiwan, & *h
& 'e .a 'a=45>
Ma*' e* n &i* a'a&ete's
Se4e*ti n . the 'ight * nt'5 is the &ain =Ce*ti e . ' FII/s in est&ents 'athe' than
stit*hing t gethe' se*t ' the&es> FII/s a'e pa5ing & 'e attenti n than e e' t * nt'5
spe*i.i* .a*t 's 4i2e 'e. '& & &ent &, 4 *a4 p 4iti*a4 sit ati n and &a*' e* n &i*
'ati s>
Ma*' e* n &i* sta=i4it5 and .is*a4 sta=i4it5 a'e =asi* h5giene .a*t 's t att'a*t . 'eign
in est 's> The * st . 'es* ing G e'n&ent wned .inan*ia4 instit ti ns s *h as UTI and
IF9I wi44 e..e*t the .is*a4 sit ati n> The g4 =a4 'ating agen*5 Standa'd 8 '
d wng'aded India s 4 *a4 * ''en*5 'ating t C n2 g'ade .' & in est&ent g'ade is
de.inite45 w ''5ing g4 =a4 in est 's, th gh 4 *a4 . nd &anage's a'e & 'e = the'ed a= t
g' nd 'ea4ities s *h as * 'p 'ate p' .ita=i4it5 and g' wth p' spe*ts>
Resea'*h =5 3S7S se* 'ities sh ws that hist 'i*a445, the w 'st st *2s in the highest
'et 'ning e&e'ging &a'2ets ha e a4& st tpe'. '&ed the =est st *2s in the 4 west
'et 'ning e&e'ging &a'2ets> F ' eDa&p4e, e' the past 0 5ea's, $!H . the st *2s in the
=est pe'. '&ing &a'2ets we'e in the t p de*i4e . a44 st *2s within e&e'ging &a'2ets,
whe'eas " H . st *2s . the w 'st &a'2ets we'e in the = tt & de*i4e> E&e'ging Asian
&a'2ets 4i2e S th J 'ea, Taiwan, Thai4and, Ind nesia and Singap 'e a'e p'esenting a
g'eat *ha44enge t Indian &a'2ets with 'ega'ds t att'a*ting FII in est&ents =5 p' idinga =ette' 'et 'n n in est&ents . ' the FII/s>
Indian &a'2ets ha e nde'pe'. '&ed these &a'2ets t the eDtent . 0 !H e' the past
Swapnagandha (06), Mitesh ( !), Nidhi ("#), Nandita ($ ), %i&it (!$) "!
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8/13/2019 Final_ECO
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8/13/2019 Final_ECO
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8/13/2019 Final_ECO
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MMS A F OREIGN I NSTITUTIONAL I NVESTORS
.' & 9hinese e* n &i* s **ess t the 'ating d wng'ades, and get 4ase' . * sed n the
'e. '& p' *ess . ' an in est ' .'iend45 = siness en i' n&ent> India has t ta2e de*isi e
steps in p' & ting the ng ing 'e. '& p' *ess t = st its *han*es . g'eate' FII/s and
F-I in.4 ws in this t gh g4 =a4 = siness en i' n&ent> Th gh the 5ea' #00# was n t a
g'eat 5ea' in te'&s . net FII in est&ents, ne h pe that the I a'i s steps ta2en =5 the
g e'n&ent in*4 ding 'e& a4 . se*t 'ia4 4i&its and F-I FII . ngi=i4it5 I w 4d &a2e
India a .a 'ed destinati n . ' FII/s in the nea' . t 'e>
The 5ea' #00" h 4ds a & 'e pti&isti* 4 2 .' & FII/s iewp int> 7 5an*5 in FII/s
in est&ent seen in ea'45 t'ends 1ith net in est&ents . Rs> #, 66 'nn =5 %an a'5 !,#00"
was despite the * ntin an*e n the C n2 stat s 'ating t India s * ''en*5 =5 S8 > S &e
en* 'aging signa4s *a&e .' & 9MIE s pwa'd 'e isi n . India s G- . 'e*ast a4 ngwith FM s & es t wa'ds . 44 ' pee * n e'ti=i4it5> The the' p siti e .a*t 's in*4 des
pti&is& in the disin est&ent p' *ess, eDpe*tati ns .' & the . 'th* &ing = dget,
& &ent & in the te*hn 4 g5 se*t ' and p'e.e'en*e . ' e< it5 e' de=t d e t de*4ining
5ie4ds, Je42a' s 9 &&ittee s 'e* &&endati n n the *apita4 gains taD> In the 5ea' #00",
Indian e* n &5 is eDpe*ted t enC 5 twin =ene.its . an app'e*iating * ''en*5 and s .te'
inte'est 'ates> In a 'ep 't =5 % M 'gan, the ' pee is eDpe*ted t app'e*iate t a' nd $ >
.' & $ >:6 against the d 44a' and the 0 5ea' 5ie4d wi44 dip t !> H =5 end Ma'*h
=e*a se . a 'ep 'ate * t in end Fe=' a'5> A4s the . 'eD 'ese' es *hest . R7I, whi*h
4ends * n.iden*e t the d &esti* * ''en*5, is eDpe*ted t = 'ge n t B;0=n =5 the end .
#00"> A44 these .a*t 's wi44 he4p &aintaining a p siti e s*ena'i . ' in est&ents in the
nea' . t 'e>
Swapnagandha (06) Mitesh ( !) Nidhi ("#) Nandita ($ ) %i&it (!$) ";