Foreign Institutional Investors (fii) in India

Foreign investment refers to the investments made by the residents of a country in the financial assets and production process of another country. For example – an investor from USA invests in the equity stock of HDFC Bank (an Indian Bank).

Определение и формы иностранных инвестиций

FII don’t directly invest in the company through buying of shares. They usually go through the secondary route. Foreign investments in the country can take the form of investments in listed companies (i.e., FII investments), investments in listed or unlisted companies other than through stock exchanges. It may be through FDI or private equity/foreign venture capital investment way, investments through American Depository Receipts/Global Depository Receipts (ADR/GDR), or investments by non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) in various forms.

Инвестиционная привлекательность Индии

Economies like India, which supply comparatively higher growth than the developed economies, have gained favour among investors as engaging investment destinations for foreign institutional investors (FIIs). Investors are optimistic on India and sentiments are favourable following government’s announcement of a series of reform measures in recent months. According to Ernst & Young’s (EYs) international Capital Confidence barometer (CCB) - Technology report, India ranks third among the foremost engaging investment destinations for technology transactions within the world. India is the third largest start-up base within the world with over 4,750 technology start-ups, and regarding one,400 new start-ups being supported in 2016, per a report by Nasscom.

Динамика инвестиций FIIs в Индии

FII’s net investments in Indian equities and debt have touched all record highs in the past financial year, backed by expectations of an economic recovery, falling interest rates and improving earnings outlook. FIIs net investments in Indian equities and debt stood at US$ 7.46 billion in 2016-17 (upto April 14, 2017). Cumulative value of investments by FIIs during April 2000-December 2016 stood at US$ 183.69 billion.

Рынок частных инвестиций в Индии

India-focused offshore funds and exchange traded funds (ETFs) witnessed net inflows of $565 million in November and helped the overall tally to reach nearly $6.5 billion in 2017. Equity mutual funds recorded the 17th straight month of net inflows with record Rs 20,362 crore (US$ 3.18 billion) inflows in August 2017 on account of rally in Indian stock markets. Equity funds received an inflow of Rs 2.86 trillion (US$44.6 billion) from November 2016 to October 2017.

Состояние рынка акций и слияний

The total market capitalization (M-cap) of all the companies listed on Bombay Stock Exchange (BSE) rose to a record high level of Rs 146 trillion (US$ 2.27 trillion) on November 19, 2017 backed by positive sentiment in the broader market. India has emerged as one of the strongest performers in terms of deals related to mergers and acquisitions (M&A). M&A activity in India more than doubled year-on-year to reach US$ 61.26 billion in 2016-17.

Мифы об инвестициях FIIs

There are certain myths / beliefs about FIIs which are not necessarily true Myth -1: - FIIs do not invest in unlisted entities. They participate only through stock exchanges Myth -2: - FIIs cannot invest at the time of IPO (initial public offering). Foreign investors investing in initial allotment of share through IPO or FPO or Private Issue are categorized as FDIs Truth on 1 and 2: - As per Section 15 (1) (a) of the SEBI FII Regulations, 1995, a Foreign Institutional Investor (FII) could invest in the securities in the primary and secondary markets including shares, debentures and warrants of companies unlisted, listed or to be listed on a recognized stock exchange in India.

Регулирование иностранных инвестиций в Индии

The regulations for foreign investment in India have been framed by the Reserve Bank of India in terms of Sections 6 and 47 of the Foreign Exchange Management Act, 1999 and notified vide Notification No. FEMA 20/2000-RB dated 3rd May 2000 viz. Foreign Exchange Management (Transfer or issue of Security by a person Resident outside India) Regulations 2000, as amended from time to time.