Important Points for IC 99 - Asset Management Exam
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iii. through a merger or an acquisition of an unrelated enterprise, iv. Participating in an equity joint venture with another investors or enterprises.
Foreign institutional investors (Flls) are those institutional investors which invest in the assets belonging to a different country other than that where these organisations are based.
FDI investment is more stable as compared to Fll. Fll can enter the stock market easily and also withdraw from it easily. But FDI cannot enter and exit that easily.
The special benefits of FDI include : Integration into global economy, Economic growth, Development of foreign trade and quality improvement, Technology development and Knowledge transfer, Reduction in Cost of capital, Increase in capital
Disadvantages of FDI in India include : Domestic investments to withstand tough completion, Capital intensive industry and its adverse consequences, No real benefits to Indian farmer and agriculture sector