Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company
of another country, either by buying a company in the target country or by expanding operations of an existing business in that
country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of
another country such as stocks and bonds.
FII: Foreign institutional investors (FIIs) are those institutional investors which invest in the assets belonging to a different
country other than that where these organizations are based.
Note: Foreign institutional investors play a very important role in
any economy. These are the big companies such as investment banks, mutual funds etc, who invest considerable amount of
money in the Indian markets. With the buying of securities by these big players, markets trend to move upward and vice-versa.
They exert strong influence on the total inflows coming into the economy.
Difference b/w FDI & FII:
1. FDI or Foreign Direct Investment is an investment that a parent company makes in a foreign
country. On the contrary, FII or Foreign Institutional Investor is an investment made by an investor in the markets of a foreign
nation.
2. In FII, the companies only need to get registered in the stock exchange to make investments. But FDI is quite different from it
as they invest in a foreign nation.
3. FDI is more preferred to the FII as they are considered to be the most beneficial kind of foreign investment for the whole
economy.
4. The Foreign Institutional Investor is also known as hot money as the investors have the liberty to sell it and take it back. But
in Foreign Direct Investment, this is not possible. In simple words, FII can enter the stock market easily and also withdraw from
it easily. But FDI cannot enter and exit that easily. This difference is what makes nations to choose FDI's more than then FIIs.
5. While the FDI flows into the primary market, the FII flows into secondary market. While FIIs are short-term investments, the
FDI's are long term.
SDRs are new form of International reserve assets, created by the International Monetary Fund in 1967. The value of SDR is
based on the portfolio of widely used countries and they are maintained as accounting entries and not as hard currency or
physical assets like Gold.
Date 19 January 2015, timing 8:30 panel 4. As I entered i found 4 members, 1 lady rest gentlemens in little more than mid age. After formal greetings, head of panel started 1. Tell me about yourself?
2.what are your hobbies?
3.what is proper fraction explain with example?
4 . where ganga river originated and ends, tell me the name of states it flow?
5.who is chief election commissioner?
6 . what is bank? Why banking?
7.what is RBI, NAME gov n dep gov of RBI.
8.who is cm of bihar, they asked me about the previous Cm of bihar till I surrendered.
9strength and weaknesses n how it will help in your work.
That's all head of panel wished me good luck and appreciated my preparation level and told me you have done well and you can leave now.