3.4. Foreign Institutional Investors

♤ Foreign Institutional Investors (FII s) means an entity established or incorporated outside India which proposes to make investment in India. Positive tidings about the Indian economy combined with a fast-growing market have made India an attractive destination for FIIs.

♤ FII inflows are called 'hot money' because they can be taken out any time.

According to recently changed guidelines, the investment of up to 10% of the project cost is categorized as FPI and above that limit comes under the category of FDI.