You must have often heard the words FII FDI and FPI investors in the stock market, today we will talk about these three words FII FDI and FPI.
(i) Foreign Institutional Investment (FII) - When any foreign company or individual invest in another or Indian company up to 10% of the share is called foreign institutional investment and this type of investor is called foreign institutional investor.
(ii) Foreign Direct Investment (FDI) – When any foreign company invests in another or Indian company more than 10% of the share is called foreign direct investment.
(iii) Foreign Portfolio Investment (FPI) - When any foreign company or individual invest in other countries or Indian securities such as shares, government bonds, corporate bonds, convertible securities, infrastructure securities, etc. is called foreign portfolio investment. The investor who makes this investment is called a foreign portfolio investor.