Trends, Magnitude and Composition of FIIs in India

Since 1991 when India under the so called regime of LPG (liberalisation, privatisation and globalisation) opened its economy, there have been continuous flows of Foreign Intuitional Investment. These flows have been experiencing different trends during the last few decades due to many domestic and global factors. The foreign investment which was just Rs 9933 in 2000–01 got increased to Rs 93725 in 2011–12. The numbers of FIIs registered with SEBI has also witnessed a sharp and steep increase confirming the ever growing interest of FIIs in India economy. Total FIIs registered was 527 in 2000–01 increased to 1765 in 2011–12. Moreover FIIs from various countries (USA, Singapore, Luxemburg, Australia, Mauritius and son) have shown great interest in the Indian stock market. Out of the total foreign portfolio investment as compared to ADRs/GDRs, offshore and other funds, FIIs have been contributing the maximum in the kitty of FPI.