- Subject index
India's Financial Sector deals with the reform measures undertaken in the financial sector and their impact. The impact is assessed in terms of growth in activities, profitability, financial stability, and financial inclusion among intermediaries such as banks, NBFCs and mutual funds, as well as in the financial markets. This book adds to the existing literature on the subject by offering an analysis of the impact that embraces not only the increased activities in the sector but also the issue of financial stability and financial inclusion.
The discussion is divided in three parts. The first part deals with financial intermediaries, the second explores the primary and secondary markets, and the third focuses on the internationalization of the Indian financial market. Further topicality is provided to the discourse ...
Chapter 10: Foreign Institutional Investment in India
Foreign Institutional Investment in India
The other aspect of the internationalisation of Indian financial market, besides the euro issues, is the operation of the foreign institutional investors (FIIs) at the Indian stock exchanges. The FIIs, such as pension funds, mutual funds, asset management companies, etc., buy and sell the securities of the Indian firms. Their net purchases mean their net portfolio investment into the Indian economy.
It is only after one year of initiating economic reforms in the country that the Indian government opened its financial market to foreign portfolio investors, especially the FIIs in September 1992. Subsequently, positive regulatory measures were taken up to attract them with the result that the number of FIIs registered with the SEBI rose from 9 ...