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FII stands for Foreign Institutional Investors. They are companies from abroad that are investing in the Stock Market.
They bring in foreign investments and exchange and infuse a lot of money into our stock markets.
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Role of foreign institutional investors in Indian stock market with special reference to sensex tumbling?
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What is Debt market?
Wholesale Debt Market is the market where the investors are mostly Banks, Financial Institutions, the RBI, Primary Dealers, Insurance companies, MFs, Corporates and FIIs.
What is wholesale debt market?
Wholesale Debt Market is the market where the investors are mostly Banks, Financial Institutions, the RBI, Primary Dealers, Insurance companies, MFs, Corporates and FIIs.
Objective of stock exchange?
Stock Exchange in any country serve one basic objective That is Funding to companies listed on that stock exchange. Companies float their IPOs on exchange and in return give buyers right of ownership and annual dividends(sometimes twice a year). Companies sell their right of ownership to traders/investors/FIIs etc and in return generates capital for their companies. Stock Exchanges also attract lots of FIIs which is good for country economy.
What are p notes?
Participatory Notes or P-Notes or PNs as it is called - are instruments issued by registered foreign institutional investors to overseas investors, who wish to invest in the stock markets without registering themselves with the market regulator Participatory notes are like contract notes. These are issued by FIIs to entities that want to invest in the Indian Stock Market but do not want to register themselves with the SEBI. FIIs registered with the SEBI and their sub-accounts can issue, deal, or hold P-Notes. The underlying security against these notes would be listed or proposed-to-be-listed securities on any Indian stock exchange.FIIs issue these notes to investors abroad with details of scrips that can be bought and expected returns over specific periods of time. If the client agrees, they deposit the funds with the overseas branch of the FII. Then, the Indian arm of the FII proceeds with the transaction, buying the scrips in the Indian market and settling it on its own account. The details of the ultimate investor are not revealed at all in the Indian market or to the SEBI. Further Suplement RBI, which had sought a ban on PNs, believes that it is tough to establish the beneficial ownership or the identity of ultimate investors. It fears that FIIs, which have to comply with the know-your customer norms, know the identity of the investor to whom the note was issued. But it is possible for the investor to sell the PN to another player resulting in multi-layering. Tax officials fear PNs are becoming a favourite with many Indian money launderers who use it to first ship funds out of the country, through hawala, and then get it back using PNs. However, Indian regulators are not very happy about participatory notes because they have no way to know who owns the underlying securities. Regulators fear that hedge fundsacting through participatory notes will cause economic volatility in India's exchanges. But I think it is too late .... Ban on PNs may pull the already-deprived market to flat on the ground.Participatory Notes. Financial instruments used by investors or hedge funds that are not registered with the Securities and Exchange Board of India to invest in Indian securities.
What are p-notes?
Participatory Notes or P-Notes or PNs as it is called - are instruments issued by registered foreign institutional investors to overseas investors, who wish to invest in the stock markets without registering themselves with the market regulator Participatory notes are like contract notes. These are issued by FIIs to entities that want to invest in the Indian stock market but do not want to register themselves with the SEBI. FIIs registered with the SEBI and their sub-accounts can issue, deal, or hold P-Notes. The underlying security against these notes would be listed or proposed-to-be-listed securities on any Indian stock exchange.FIIs issue these notes to investors abroad with details of scrips that can be bought and expected returns over specific periods of time. If the client agrees, they deposit the funds with the overseas branch of the FII. Then, the Indian arm of the FII proceeds with the transaction, buying the scrips in the Indian market and settling it on its own account. The details of the ultimate investor are not revealed at all in the Indian market or to the SEBI. Further Suplement RBI, which had sought a ban on PNs, believes that it is tough to establish the beneficial ownership or the identity of ultimate investors. It fears that FIIs, which have to comply with the know-your customer norms, know the identity of the investor to whom the note was issued. But it is possible for the investor to sell the PN to another player resulting in multi-layering. Tax officials fear PNs are becoming a favourite with many Indian money launderers who use it to first ship funds out of the country, through hawala, and then get it back using PNs. However, Indian regulators are not very happy about participatory notes because they have no way to know who owns the underlying securities. Regulators fear that hedge fundsacting through participatory notes will cause economic volatility in India's exchanges. But I think it is too late .... Ban on PNs may pull the already-deprived market to flat on the ground.Participatory Notes. Financial instruments used by investors or hedge funds that are not registered with the Securities and Exchange Board of India to invest in Indian securities.
What is the roll of SEBI in stock exchange?
SEBI is the regulatory body of the Stock Markets in India. It registers and regulates the functioning of various intermediaries viz, Stock exchanges, Depositories, Merchant Bankers, Brokers, FIIs etac. As Stock exchanges is one of the intermediary. hence SEBI gives registration to the stock exchanges and regulate their functioning..
The Sensex in India has already breached near 8K and unless the FIIs stop selling it will see more lows Should the government take desperate measures to stem more fall?
Yes... govt. have to some desperate steps to stop this down....but till then we have to wait and watch and keep an eye on Market updates... for stock market updates visit http://profit.ndtv.com/Markets
Highest stake holder in ICICI bank?
FIIS's
What are the reasons for appreciation of currency?
Huge inflow of funds(FIIs)
What is the total number of registered FIIs in India till 2008?
Please visit : http://www.sebi.gov.in/FIIIndex.jsp?fiiIndxName=% to find out the list of FIIs registered with SEBI. The total number should be around 1540.
What effect in India for libaralization?
Liberlisation means being liberal. Doctrine of liberal economy is/to be adopted by India. Because of Liberalisation, India experiencing flow of foreign investment in India. It gave avenues to Foreign Institutional Investor (FII) to invest their capital in Indian industries for better return on their investment (ROI). These FIIs enter in security market, speculate, bring about higher volatility in market. Sharpe rise/decline in certain scripts. Results into merger and acquision of weaker or smaller companies into a bigger companies. As there is no restriction on repatriation, these FIIs are free to take back not only their capital but also huge profit, at the cost of inocent Indian individuals. The above is about urban salaried class person. On rural front, on behest of IMF and IBRD (World Bank), subsidies offered to farmers is keep on reducing year after year.
