What's The Difference Between Fdi And Fii? Also Give Some Examples?


1 Answers

amber Jhon Profile
amber Jhon answered
Basically FDI is the Foreign Direct Investment in a foreign country to get at least 10% of voting stocks. It increases the management interest in the enterprise of the other country. In very simple words, FDI is an investment which a parent enterprise made in a foreign country. For example, Multinational companies present the best examples of FDI like Telenor, the seventh largest company in the world has a number of companies in various countries. The daughter companies of Telenor Group act as the FDI for the host countries. In most of the states there is an FDI board which is responsible to handle FDI coming in the country like in India, one of the attractive FDI country, there is Foreign Investment Promotion Board (FIPB). On the other hand in FII, Foreign Institutional Investors, foreign investors invest in the markets of a foreign country for example, insurance companies, investment companies, charitable organizations etc. The concept of FII is very common in India. Such companies are just required to register on the stock exchange or in the markets to make investments and there is no board controlling it.


Answer Question