Working

♤ Brokers and Foreign institutional investors (FIIs) registered with SEBI, issue the financial instruments to investors in other countries who want to invest in Indian securities.

♤ This system lets unregistered overseas investors buy Indian shares without the need to register with the Indian regulatory body. These investments are also beneficial to India. They provide access to quick money to the Indian capital market

♤ Because of the short-term nature of investing, regulators have fewer guidelines for foreign institutional investors. To invest in the Indian stock markets and to avoid the cumbersome regulatory approval process, these investors trade participatory notes.