Foreign institutional investors and the stock exchange

Type :

Term papers

Pages :

28 pages

Format :

.doc

Published date :

05/27/2009

Category :

Economics & finance

Sub category :

Economics

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Summary :

Introduction to the Indian economy
Introduction to foreign institutional investors
Guidelines for FII's
Stock market and stock exchanges
Role of stock exchanges in the economy
The investment scenario
FIIs, Indian stock exchanges and Indian economy
Subscription to participatory notes
Policies recently changed/modified for FII's
Overview of the stock market movement
Trend of FII's in 2005-06
Importance and role of FII's
Growth in FII's
Impact of overseas investors
Indirect effects: Growth of securities brokers
Finding from the study
Conclusion
Bibliography

Abstract

India has struggled financially since independence, experiencing slow economic growth and economic setbacks due to climatic extremes or political disturbances. The country has been gradually transforming its economic base from agrarian to industrial and commercial. Under British rule in the 19th century, India's cottage industries and thriving trade were virtually destroyed to make way for European manufactured goods, paid for by exports of agricultural products such as cotton, opium, and tea. Beginning in the late 19th century a modern industrial sector and an extensive infrastructure of railways and irrigation works were slowly built with British and Indian capital. Nevertheless, India's economy stagnated during the last 30 or so years of British rule. At independence in 1947 India was desperately poor, with an aging textile industry as its only major industrial sector.

Economic policy after independence emphasized central planning, with the government setting goals for and closely regulating private industry. Self-sufficiency was promoted in order to foster domestic industry and reduce dependence on foreign trade. These efforts produced steady economic growth in the 1950s, but less positive results in the two succeeding decades. By the early 1970s India had achieved its goal of self-sufficiency in food production, although this food was not equally available to all Indians due to skewed distribution and occasional shortfalls in the harvest.