{"id":45982,"date":"2025-05-01T14:46:20","date_gmt":"2025-05-01T09:16:20","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=45982"},"modified":"2025-05-13T14:48:33","modified_gmt":"2025-05-13T09:18:33","slug":"foreign-institutional-investors","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/foreign-institutional-investors\/","title":{"rendered":"Foreign Institutional Investors (FIIs)"},"content":{"rendered":"<h2>Foreign Institutional Investors (FIIs) Latest News<\/h2>\n<p>Foreign Institutional Investors (FIIs) became net buyers of Indian equities for the first time in four months in April 2025, registering an inflow of \u20b94,223 crore.<\/p>\n<h2>About Foreign Institutional Investors (FIIs)<\/h2>\n<ul>\n<li><strong>FIIs<\/strong>\u00a0are a subset of\u00a0<strong>Foreign Portfolio Investors (FPIs)<\/strong>, comprising\u00a0<strong>large institutional investors<\/strong>\u00a0like\u00a0<strong>mutual funds, pension funds, insurance companies, and hedge funds<\/strong>.<\/li>\n<li><strong>FIIs typically adopt a strategic and structured investment approach<\/strong>\u00a0in foreign financial markets, offering\u00a0<strong>long-term capital inflows<\/strong>\u00a0to emerging economies like India.<\/li>\n<li><strong>However, rapid FII outflows<\/strong>\u00a0can destabilise domestic markets, making\u00a0<strong>regulatory oversight<\/strong>\u00a0crucial.<\/li>\n<\/ul>\n<h3>Regulatory Framework Governing FIIs in India<\/h3>\n<ul>\n<li><strong>FIIs are regulated by<\/strong>:\n<ul>\n<li>The\u00a0<strong>Foreign Exchange Management Act (FEMA), 1999<\/strong><\/li>\n<li><strong>SEBI (Foreign Portfolio Investors) Regulations<\/strong><\/li>\n<li><strong>The Reserve Bank of India (RBI)<\/strong>\u00a0monitors\u00a0<strong>sectoral investment ceilings<\/strong>\u00a0daily.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3>Investment Ceilings and Eligibility<\/h3>\n<ul>\n<li>FIIs can invest\u00a0<strong>up to 10% in any single Indian company<\/strong>, subject to a\u00a0<strong>cumulative FII\/NRI\/PIO limit of 24%<\/strong>.<\/li>\n<li>Eligible FII entities now include\u00a0<strong>university funds, charitable endowments, and trusts<\/strong>\u00a0with a minimum\u00a0<strong>five-year operational track record<\/strong>.<\/li>\n<li>FIIs are permitted to invest in\u00a0<strong>unlisted securities<\/strong>\u00a0and\u00a0<strong>use their proprietary funds<\/strong>.<\/li>\n<\/ul>\n<h3>\u00a0Macroeconomic Drivers<\/h3>\n<ul>\n<li>A major reason cited for the\u00a0<strong>increased FII participation<\/strong>\u00a0is the\u00a0<strong>softening of the U.S. Dollar Index<\/strong>, which has declined from\u00a0<strong>104\u2013105 to nearly 99\u2013100<\/strong>, improving the\u00a0<strong>relative strength of the Indian rupee<\/strong>.<\/li>\n<li>The\u00a0<strong>Reserve Bank of India&#8217;s accommodative stance<\/strong>\u00a0and\u00a0<strong>macro-stability<\/strong>\u00a0have encouraged investments, particularly in\u00a0<strong>banking, financial services, and insurance (BFSI)<\/strong>\u00a0sectors.<\/li>\n<li>Meanwhile, FIIs\u00a0<strong>reduced their exposure to the IT sector<\/strong>\u00a0due to concerns about a\u00a0<strong>potential U.S. recession<\/strong>\u00a0and its impact on tech earnings.<\/li>\n<\/ul>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/www.thehindu.com\/business\/fiis-turn-net-buyers-of-indian-stocks-first-time-in-4-months\/article69510560.ece\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FIIs are a subset of Foreign Portfolio Investors (FPIs), comprising large institutional investors like mutual funds, pension funds, insurance companies, and hedge funds.<\/p>\n","protected":false},"author":11,"featured_media":45983,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[229,21,23],"class_list":{"0":"post-45982","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-foreign-institutional-investors","9":"tag-prelims-pointers","10":"tag-upsc-prelims-current-affairs","11":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/45982","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=45982"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/45982\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/45983"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=45982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=45982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=45982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}