Foreign Institutional Investors in India
With a view to facilitating the operational procedures for foreign institutional investment in India and encouraging the present investment trends, it was decided to increase the role of foreign brokers in transactions of FIIs by allowing them to provide assistance to the FIIs registered with SEBI in their dealings in India. A few foreign broking firms have set up fully owned subsidiaries in India. These broking outfits can deal directly in the Indian stock markets. Custodians approved by SEBI could render further, custodial services. The FIIs have been playing a major role in the Indian capital market with cumulative investments having reached $11.24 billion by March-end 2000. As compared to this, the cumulative amount of foreign direct investment (FDI) since 1991 up to December end 1999 has been estimated at $19.2 billion. The market capitalisation varies depending on share market prices.