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Premium member Presentation Transcript PowerPoint Presentation: FOREIGN INVESTMENT IN INDIAINDIAN ECONOMY: Eleventh largest ECONOMY GDP growth 8.9% (2010, Q2) 4th largest by PPP - $4.00 trillion INDIAN ECONOMYCapital: Capital 1.Cash or goods used to generate income either by investing in a business or a different income property. 2. The net worth of a business; that is, the amount by which its assets exceed its liabilities. 3 . The money ,property, and other valuables which collectively represent the wealth of an individual or business . CAPITALImportance of capital: Importance of capital Capital helps achieve strategic-financial goals To meet trade deficit To sustain economic growth IMPORTANCE OF CAPITALTypes of foreign capitals: Types of foreign capitals FOREIGN DIRECT INVESTMENT(FDI) FOREIGN INSTITUTIONAL INVESTMENT(FII) TYPES OF FOREIGN CAPITALWHY INDIA REQUIRE FOREIGN CAPITAL: WHY INDIA REQUIRE FOREIGN CAPITAL Pre-liberalization Liberalization of economy Post liberalization WHY INDIA NEED FOREIGN CAPITALSHORTAGE OF CAPITAL IN INDIA: 1980s crisis due to growing fiscal imbalance. Fiscal deficits during the 2nd half of the 80s. Borrowing by the G ovt from the RBI, IMF, WB. SHORTAGE OF CAPITAL IN INDIASHORTAGE OF CAPITAL IN INDIA: During 1980s, G ovt Expenditure - Revenues Subsidies grew at a rate faster than G ovt E xpenditures. Expenditure on subsidies rose from Rs.19.1 bn in 1980-81 to Rs. 107.2 bn in 1990-91. SHORTAGE OF CAPITAL IN INDIASHORTAGE OF CAPITAL IN INDIA: The Indian economy was indeed in deep trouble due to: Lack of foreign reserves Gold reserve was empty Before 1991, India was a closed economy SHORTAGE OF CAPITAL IN INDIASHORTAGE OF CAPITAL IN INDIA: The G ovt was close to default. The Govt of India decided to bring reforms termed as liberalization. SHORTAGE OF CAPITAL IN INDIAWhy FDI and FII important for India : Why FDI and FII important for India India is labour abundant country Labour force of 478 million (2nd; 2009) Labour force by occupation :Agriculture (52%), Industry (14%), Services (34%) (2009 est.) India has a large pool of skilled managerial and technical expertise WHY INDIA NEED FDI AND FIIWHY INDIA NEED FDI AND FII: Large unexploited natural resource To share technical know-how To bring in new technology in country To share good foreign relation WHY INDIA NEED FDI AND FIIFDI (DEFINITION): Foreign Direct Investment (FDI) occurs when an investor based in one country (the home country) acquires an asset in another country (the host country) with the intent to manage the asset . FDI ( DEFINITION)WHY FDI ?: Gain a foothold in a new geographic market Global competitiveness & positioning Fill gaps in company’s product lines in a global industry Reduce costs- R&D, production and distribution WHY FDI ?CONTD..: Inadequate domestic fund Foreign funds guide the investment flow Speed-up and initiate the domestic fund flow Foreign funds help to bring in technical-know how and new trends CONTD..FACTORS REQUIRED TO ATTRACT FDI: Low cost Qualified, educated/skilled labor pool Long term market potential Access to natural resources Population of a country plays an important role FACTORS REQUIRED TO ATTRACT FDICONTD…: Political & environment stability Financial incentives (funds from local govt.) Fiscal incentives (exemption from import duties) Indirect incentives (provides land & other resources) CONTD…PowerPoint Presentation: 1991- Foreign Investment Promotion Board ( FIPB) 1996- Foreign Investment promotion council ( FIPC) 1999- Foreign Investment implementation Authority ( FIIA) 2004- Investment Commission Secretariat of Industrial Assistance (SIA) MAJOR BODIES CONSTITUTED FOR FDITYPES OF FDI: Purchase of existing assets New investment Participation in an international joint-venture TYPES OF FDIPowerPoint Presentation: Inflow of equipment & technology Competitive advantage & innovation Financial resources for expansion Employment generation Contribution to exports growth MERITSCONTD…: Access to global marketplace Access to low cost resources Access to new market/distribution channel for products Improved consumer welfare Advantage of increasing levels of FDI CONTD…PowerPoint Presentation: Crowding of local industry Repatriation of profits/dividends by investor Conflicts of codes/laws Loss of control DEMERITSCONTD…: Possible exploitation of resources-material/wages Effect on natural environment Socio cultural effect CONTD…WHY FDI IN INDIA ?: WHY FDI IN INDIA ? Liberal, Largest Democracy, Political Stability Second Largest emerging market (US$2.4 trillion) Skilled & Competitive labors force Highest rates of return on investmentWHY FDI IN INDIA ?(CONT…): WHY FDI IN INDIA ?(CONT…) One Hundred of the Fortune 500 have R & D facilities in India Second largest group of software developers after the U.S. Lists 6,500 companies on the BSE (only the NYSE has more) World’s fourth largest Economy & second largest Pharmaceutical IndustryWHY FDI IN INDIA ?(CONT…): WHY FDI IN INDIA ?(CONT…) Growth over the past few years averaging 8% Destination for BPO, KPO, etc Second largest English speaking, scientific, technical &executive manpower Low costs & Tax exemptions in SEZFDI in India are approved through two routes: FDI in India are approved through two routes Automatic approval by RBI The FIPB route – processing of non-automatic approval casesFDI : INDIAN SCENARIO: FDI : INDIAN SCENARIO FDI is permitted as under the following forms of Investments: Through Financial collaborations Through joint ventures & technical collaborations Through Capital markets via E uro issues Through private placements or preferential allotmentsFORBIDDEN TERRITORIES: FORBIDDEN TERRITORIES FDI is not permitted in the following Industrial sectors: Arms & ammunition Atomic energy Railway transport Mining of iron, manganese, chrome, gypsum, sulphur, gold, diamonds, copper, zinc Retail Trading (except single brand product retailing) Lottery business Gambling & Betting Business of Chit Fund Nidhi companyFDI EQUITY INFLOWS (MONTH-WISE) DURING THE FINANCIAL YEAR 2010-11:: FDI EQUITY INFLOWS (MONTH-WISE) DURING THE FINANCIAL YEAR 2010-11: Financial Year 2010-11 ( April-March ) Amount of FDI inflows* (In ` Crore) Amount of FDI inflows* (In US$ mn) April 2010 9,697 2,179 May 2010 10,135 2,213 June 2010 6,429 1,380 July 2010 8,359 1,785 August 2010 6,196 1,330 September 2010 9,754 2,118 October 2010 6,185 1,392 November 2010 7,328 1,628 2010-11 (up to November 2010) # 64,083 14,025 2009-10 (up to November 2009) 93,096 19,326 %age growth over last year ( - ) 31 % ( - ) 27 %SHARE OF 10 TOP INVESTING COUNTRIES FDI EQUITY INFLOWS (Financial years):: SHARE OF 10 TOP INVESTING COUNTRIES FDI EQUITY INFLOWS (Financial years):SECTORS ATTRACTING HIGHEST FDI EQUITY INFLOWS: SECTORS ATTRACTING HIGHEST FDI EQUITY INFLOWS FDI Limit in Different Sector: FDI Limit in Different Sector Sector/Activity FDI Cap/Equity Entry Route Airports 100% Automatic Construction Development 100% Automatic Petroleum & Natural Gas (b) Refining 26 % ( For PSUs ) 100 % ( Private companies) FIPB Automatic Other than Refining 100% Automatic Power ( Except Atomic energy); regulations transmission, distribution and Power Trading 100% Automatic Ports 100% Automatic Roads & Highways 100% Automatic Shipping 100% AutomaticFDI Limit in Different Sector: FDI Limit in Different Sector Sector/Activity FDI Cap/Equity Entry Route Agriculture and animal husbandry 100% Automatic Tea plantation 100% FIPB Mining 100% Automatic Drugs & pharmaceuticals 100% Automatic Hazardous chemical 100% Automatic Industrial Explosives 100% Automatic MANUFACTURING 24% FIPB Alcohol – Distillation & Brewing 100% Automatic Cigars & Cigarettes Manufacture 100% FIPB Defense Industry 26% FIPBFII: FII FIIs are defined under SEBI Regulations as “ an institution that is a legal entity established or incorporated outside India proposing to make investments in India only in securities. “WHO CAN GET REGISTERED AS FII ?: WHO CAN GET REGISTERED AS FII ? Pension funds Mutual funds Investment Trust Insurance companies Endowment funds University funds Foundations or Charitable trusts Asset management companies Power of Attorney holders BankCATEGORIES OF REGISTERED FIIs: CATEGORIES OF REGISTERED FIIs Normal FIIs: not less than 70% in equity related instruments 30% in non-equity instruments 100% Debt FIIs: - permitted to invest only in debt instrumentsAN FII CAN INVEST ONLY IN THE FOLLOWING :: AN FII CAN INVEST ONLY IN THE FOLLOWING : Securities in the Primary & Secondary markets Units of schemes floated by Domestic mutual funds & Collective investment scheme Dated Government Securities Derivatives traded on a recognized stock exchange Commercial paper Security receipts Indian Depository receiptsFORBIDDEN AREAS FOR FII: FORBIDDEN AREAS FOR FII Govt Bonds Chit fund Nidhi Company Agricultural or plantation activities Real estate business or construction of farm houses Trading in Transferable Development Rights (TDRs).PowerPoint Presentation: What are the parameters on which SEBI decides FII applicants’ eligibility?PowerPoint Presentation: What are the restrictions that FIIs face in India?ADVANTAGES OF FII: ADVANTAGES OF FII Large availability of capital Unavailability of Corporate Debt Increases FOREX reserves Increases domestic saving and investmentsDISADVANTAGES OF FII: DISADVANTAGES OF FII Problems of Inflation Hot money Adverse impact on exports Problem for small investor Revival of developed economiesTRENDS IN FII INVESTMENTS : TRENDS IN FII INVESTMENTS FII Investment Activity in 2010 Equity Investment Debt InvestmentCURRENT SCENARIO: CURRENT SCENARIO FIIs investments worth US$ 4.11b in equities. Poured US$ 667.71m into the debt market. Number of registered FIIs - 1,738. Number of registered sub-accounts - 5,592 as of November 10, 2010.CURRENT SCENARIO(cont…): CURRENT SCENARIO(cont…) India has received more FII funds as compared to its Asian peers. According to Bloomberg, Net FII inflow in INDIA -US$ 28.5 billion, far ahead of South Korea (US$ 16 billion) and Japan (US$ 13 billion). Net FII inflows as a percentage of the market capitalization are also the highest in India. ( 1.8 per cent in 2010, followed by South Korea at 1.6 per cent .)Related Articles: Related Articles FII money pushes Sensex to all-time high Cumulative FII inflows into India cross $100 bn mark ( 14 NOV, 2010, 07.45AM IST, ASHISH GUPTA,ET BUREAU ) FII investments touch US$ 17.19 billion in Jan 2011 IBEF: January 31, 2011 FIIs net buyers of Rs 539 cr in cash mkt BS Reporter / Mumbai February 3, 2011, 17:42 ISTPowerPoint Presentation: Deutsche group Citigroup HSBC Global Investments Morgan Stanley and Co. International Merrill Lynch Capital Markets CLSA Asia-Pacific Goldman Sachs Investments Mauritius JPMorgan Chase UBS Securities Asia Ltd** Bear Stearns Asset Management Ltd ABN Amro NV Lehman Brothers Asia Ltd 84 184 126 154 142 42 104 20 88 86 45 1 GLOBAL PLAYERS IN INDIAN MARKET Holdings of world's top investment banks and brokerages in Indian firms Source: CapitalineOTHER PLAYERS..: OTHER PLAYERS.. IL&FS Investment Managers (IIML) Ltd - laundry services business of FMCG player Jyothy Laboratories Limited One97 Communications - an agreement with Mauritius-based PE firm SAIF Partners to launch a US$ 107.9 million fund to provide seed capital to start-up technology companies Olympus Capital – Investment in companies in infrastructure supply chain managementDIFFERENCE BETWEEN FDI & FII: DIFFERENCE BETWEEN FDI & FII FDI FII 1 FDI is when foreign company brings capital into a country or an economy to set up a production or some other facility . FDI gives the foreign company some control in the operations of the company FII is when a foreign company buys equity in a company through the stock markets. Therefore, in this case, FII would not give the foreign company any control in the company 2 FDI involves in the direct production activity & also of medium to long term nature FPI is a short term investment mostly in the financial markets & it consist of FII 3 It enables a degree of control in the company It does not involve obtaining a degree of control in a company 4 FDI brings-long term capital FII brings short-term capitalOTHER DIFFERENCES…: OTHER DIFFERENCES… Government Preference Stability You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
NEW FII & FDI FINAL aSGuest123932 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 20 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: January 12, 2012 This Presentation is Public Favorites: 0 Presentation Description foreign direct investment Comments Posting comment... Premium member Presentation Transcript PowerPoint Presentation: FOREIGN INVESTMENT IN INDIAINDIAN ECONOMY: Eleventh largest ECONOMY GDP growth 8.9% (2010, Q2) 4th largest by PPP - $4.00 trillion INDIAN ECONOMYCapital: Capital 1.Cash or goods used to generate income either by investing in a business or a different income property. 2. The net worth of a business; that is, the amount by which its assets exceed its liabilities. 3 . The money ,property, and other valuables which collectively represent the wealth of an individual or business . CAPITALImportance of capital: Importance of capital Capital helps achieve strategic-financial goals To meet trade deficit To sustain economic growth IMPORTANCE OF CAPITALTypes of foreign capitals: Types of foreign capitals FOREIGN DIRECT INVESTMENT(FDI) FOREIGN INSTITUTIONAL INVESTMENT(FII) TYPES OF FOREIGN CAPITALWHY INDIA REQUIRE FOREIGN CAPITAL: WHY INDIA REQUIRE FOREIGN CAPITAL Pre-liberalization Liberalization of economy Post liberalization WHY INDIA NEED FOREIGN CAPITALSHORTAGE OF CAPITAL IN INDIA: 1980s crisis due to growing fiscal imbalance. Fiscal deficits during the 2nd half of the 80s. Borrowing by the G ovt from the RBI, IMF, WB. SHORTAGE OF CAPITAL IN INDIASHORTAGE OF CAPITAL IN INDIA: During 1980s, G ovt Expenditure - Revenues Subsidies grew at a rate faster than G ovt E xpenditures. Expenditure on subsidies rose from Rs.19.1 bn in 1980-81 to Rs. 107.2 bn in 1990-91. SHORTAGE OF CAPITAL IN INDIASHORTAGE OF CAPITAL IN INDIA: The Indian economy was indeed in deep trouble due to: Lack of foreign reserves Gold reserve was empty Before 1991, India was a closed economy SHORTAGE OF CAPITAL IN INDIASHORTAGE OF CAPITAL IN INDIA: The G ovt was close to default. The Govt of India decided to bring reforms termed as liberalization. SHORTAGE OF CAPITAL IN INDIAWhy FDI and FII important for India : Why FDI and FII important for India India is labour abundant country Labour force of 478 million (2nd; 2009) Labour force by occupation :Agriculture (52%), Industry (14%), Services (34%) (2009 est.) India has a large pool of skilled managerial and technical expertise WHY INDIA NEED FDI AND FIIWHY INDIA NEED FDI AND FII: Large unexploited natural resource To share technical know-how To bring in new technology in country To share good foreign relation WHY INDIA NEED FDI AND FIIFDI (DEFINITION): Foreign Direct Investment (FDI) occurs when an investor based in one country (the home country) acquires an asset in another country (the host country) with the intent to manage the asset . FDI ( DEFINITION)WHY FDI ?: Gain a foothold in a new geographic market Global competitiveness & positioning Fill gaps in company’s product lines in a global industry Reduce costs- R&D, production and distribution WHY FDI ?CONTD..: Inadequate domestic fund Foreign funds guide the investment flow Speed-up and initiate the domestic fund flow Foreign funds help to bring in technical-know how and new trends CONTD..FACTORS REQUIRED TO ATTRACT FDI: Low cost Qualified, educated/skilled labor pool Long term market potential Access to natural resources Population of a country plays an important role FACTORS REQUIRED TO ATTRACT FDICONTD…: Political & environment stability Financial incentives (funds from local govt.) Fiscal incentives (exemption from import duties) Indirect incentives (provides land & other resources) CONTD…PowerPoint Presentation: 1991- Foreign Investment Promotion Board ( FIPB) 1996- Foreign Investment promotion council ( FIPC) 1999- Foreign Investment implementation Authority ( FIIA) 2004- Investment Commission Secretariat of Industrial Assistance (SIA) MAJOR BODIES CONSTITUTED FOR FDITYPES OF FDI: Purchase of existing assets New investment Participation in an international joint-venture TYPES OF FDIPowerPoint Presentation: Inflow of equipment & technology Competitive advantage & innovation Financial resources for expansion Employment generation Contribution to exports growth MERITSCONTD…: Access to global marketplace Access to low cost resources Access to new market/distribution channel for products Improved consumer welfare Advantage of increasing levels of FDI CONTD…PowerPoint Presentation: Crowding of local industry Repatriation of profits/dividends by investor Conflicts of codes/laws Loss of control DEMERITSCONTD…: Possible exploitation of resources-material/wages Effect on natural environment Socio cultural effect CONTD…WHY FDI IN INDIA ?: WHY FDI IN INDIA ? Liberal, Largest Democracy, Political Stability Second Largest emerging market (US$2.4 trillion) Skilled & Competitive labors force Highest rates of return on investmentWHY FDI IN INDIA ?(CONT…): WHY FDI IN INDIA ?(CONT…) One Hundred of the Fortune 500 have R & D facilities in India Second largest group of software developers after the U.S. Lists 6,500 companies on the BSE (only the NYSE has more) World’s fourth largest Economy & second largest Pharmaceutical IndustryWHY FDI IN INDIA ?(CONT…): WHY FDI IN INDIA ?(CONT…) Growth over the past few years averaging 8% Destination for BPO, KPO, etc Second largest English speaking, scientific, technical &executive manpower Low costs & Tax exemptions in SEZFDI in India are approved through two routes: FDI in India are approved through two routes Automatic approval by RBI The FIPB route – processing of non-automatic approval casesFDI : INDIAN SCENARIO: FDI : INDIAN SCENARIO FDI is permitted as under the following forms of Investments: Through Financial collaborations Through joint ventures & technical collaborations Through Capital markets via E uro issues Through private placements or preferential allotmentsFORBIDDEN TERRITORIES: FORBIDDEN TERRITORIES FDI is not permitted in the following Industrial sectors: Arms & ammunition Atomic energy Railway transport Mining of iron, manganese, chrome, gypsum, sulphur, gold, diamonds, copper, zinc Retail Trading (except single brand product retailing) Lottery business Gambling & Betting Business of Chit Fund Nidhi companyFDI EQUITY INFLOWS (MONTH-WISE) DURING THE FINANCIAL YEAR 2010-11:: FDI EQUITY INFLOWS (MONTH-WISE) DURING THE FINANCIAL YEAR 2010-11: Financial Year 2010-11 ( April-March ) Amount of FDI inflows* (In ` Crore) Amount of FDI inflows* (In US$ mn) April 2010 9,697 2,179 May 2010 10,135 2,213 June 2010 6,429 1,380 July 2010 8,359 1,785 August 2010 6,196 1,330 September 2010 9,754 2,118 October 2010 6,185 1,392 November 2010 7,328 1,628 2010-11 (up to November 2010) # 64,083 14,025 2009-10 (up to November 2009) 93,096 19,326 %age growth over last year ( - ) 31 % ( - ) 27 %SHARE OF 10 TOP INVESTING COUNTRIES FDI EQUITY INFLOWS (Financial years):: SHARE OF 10 TOP INVESTING COUNTRIES FDI EQUITY INFLOWS (Financial years):SECTORS ATTRACTING HIGHEST FDI EQUITY INFLOWS: SECTORS ATTRACTING HIGHEST FDI EQUITY INFLOWS FDI Limit in Different Sector: FDI Limit in Different Sector Sector/Activity FDI Cap/Equity Entry Route Airports 100% Automatic Construction Development 100% Automatic Petroleum & Natural Gas (b) Refining 26 % ( For PSUs ) 100 % ( Private companies) FIPB Automatic Other than Refining 100% Automatic Power ( Except Atomic energy); regulations transmission, distribution and Power Trading 100% Automatic Ports 100% Automatic Roads & Highways 100% Automatic Shipping 100% AutomaticFDI Limit in Different Sector: FDI Limit in Different Sector Sector/Activity FDI Cap/Equity Entry Route Agriculture and animal husbandry 100% Automatic Tea plantation 100% FIPB Mining 100% Automatic Drugs & pharmaceuticals 100% Automatic Hazardous chemical 100% Automatic Industrial Explosives 100% Automatic MANUFACTURING 24% FIPB Alcohol – Distillation & Brewing 100% Automatic Cigars & Cigarettes Manufacture 100% FIPB Defense Industry 26% FIPBFII: FII FIIs are defined under SEBI Regulations as “ an institution that is a legal entity established or incorporated outside India proposing to make investments in India only in securities. “WHO CAN GET REGISTERED AS FII ?: WHO CAN GET REGISTERED AS FII ? Pension funds Mutual funds Investment Trust Insurance companies Endowment funds University funds Foundations or Charitable trusts Asset management companies Power of Attorney holders BankCATEGORIES OF REGISTERED FIIs: CATEGORIES OF REGISTERED FIIs Normal FIIs: not less than 70% in equity related instruments 30% in non-equity instruments 100% Debt FIIs: - permitted to invest only in debt instrumentsAN FII CAN INVEST ONLY IN THE FOLLOWING :: AN FII CAN INVEST ONLY IN THE FOLLOWING : Securities in the Primary & Secondary markets Units of schemes floated by Domestic mutual funds & Collective investment scheme Dated Government Securities Derivatives traded on a recognized stock exchange Commercial paper Security receipts Indian Depository receiptsFORBIDDEN AREAS FOR FII: FORBIDDEN AREAS FOR FII Govt Bonds Chit fund Nidhi Company Agricultural or plantation activities Real estate business or construction of farm houses Trading in Transferable Development Rights (TDRs).PowerPoint Presentation: What are the parameters on which SEBI decides FII applicants’ eligibility?PowerPoint Presentation: What are the restrictions that FIIs face in India?ADVANTAGES OF FII: ADVANTAGES OF FII Large availability of capital Unavailability of Corporate Debt Increases FOREX reserves Increases domestic saving and investmentsDISADVANTAGES OF FII: DISADVANTAGES OF FII Problems of Inflation Hot money Adverse impact on exports Problem for small investor Revival of developed economiesTRENDS IN FII INVESTMENTS : TRENDS IN FII INVESTMENTS FII Investment Activity in 2010 Equity Investment Debt InvestmentCURRENT SCENARIO: CURRENT SCENARIO FIIs investments worth US$ 4.11b in equities. Poured US$ 667.71m into the debt market. Number of registered FIIs - 1,738. Number of registered sub-accounts - 5,592 as of November 10, 2010.CURRENT SCENARIO(cont…): CURRENT SCENARIO(cont…) India has received more FII funds as compared to its Asian peers. According to Bloomberg, Net FII inflow in INDIA -US$ 28.5 billion, far ahead of South Korea (US$ 16 billion) and Japan (US$ 13 billion). Net FII inflows as a percentage of the market capitalization are also the highest in India. ( 1.8 per cent in 2010, followed by South Korea at 1.6 per cent .)Related Articles: Related Articles FII money pushes Sensex to all-time high Cumulative FII inflows into India cross $100 bn mark ( 14 NOV, 2010, 07.45AM IST, ASHISH GUPTA,ET BUREAU ) FII investments touch US$ 17.19 billion in Jan 2011 IBEF: January 31, 2011 FIIs net buyers of Rs 539 cr in cash mkt BS Reporter / Mumbai February 3, 2011, 17:42 ISTPowerPoint Presentation: Deutsche group Citigroup HSBC Global Investments Morgan Stanley and Co. International Merrill Lynch Capital Markets CLSA Asia-Pacific Goldman Sachs Investments Mauritius JPMorgan Chase UBS Securities Asia Ltd** Bear Stearns Asset Management Ltd ABN Amro NV Lehman Brothers Asia Ltd 84 184 126 154 142 42 104 20 88 86 45 1 GLOBAL PLAYERS IN INDIAN MARKET Holdings of world's top investment banks and brokerages in Indian firms Source: CapitalineOTHER PLAYERS..: OTHER PLAYERS.. IL&FS Investment Managers (IIML) Ltd - laundry services business of FMCG player Jyothy Laboratories Limited One97 Communications - an agreement with Mauritius-based PE firm SAIF Partners to launch a US$ 107.9 million fund to provide seed capital to start-up technology companies Olympus Capital – Investment in companies in infrastructure supply chain managementDIFFERENCE BETWEEN FDI & FII: DIFFERENCE BETWEEN FDI & FII FDI FII 1 FDI is when foreign company brings capital into a country or an economy to set up a production or some other facility . FDI gives the foreign company some control in the operations of the company FII is when a foreign company buys equity in a company through the stock markets. Therefore, in this case, FII would not give the foreign company any control in the company 2 FDI involves in the direct production activity & also of medium to long term nature FPI is a short term investment mostly in the financial markets & it consist of FII 3 It enables a degree of control in the company It does not involve obtaining a degree of control in a company 4 FDI brings-long term capital FII brings short-term capitalOTHER DIFFERENCES…: OTHER DIFFERENCES… Government Preference Stability