The impact of FIIs on Indian National stock exchange and how effective the Government is in Liberalizing and controlling the National Stock exchange?
Summary :
Table of Contents
- Introduction
- Background information and rationale of the study
- Aims and objectives of the study
- Research methodology
- Literature review of the study
- Policies of the government regarding Foreign Institutional Investors (FII)
- Nature and quantity of FIIs flow
- Role of FIIs in India
- Determinants of FIIs
- FIIs role in stock market
- Data analysis
- Findings
- FII effect on national stock exchange
- FIIs and domestic investors in national stock exchange
- Bibliography
- Conclusion
Abstract
The intention of this research was to examine the impact of Foreign Institutional Investors (FII) on the indian national stock exchange (NSE). To achieve the aims, the following objectives have been determined to study how FII plays an important role in national stock exchange; to study the working mechanism of the national stock exchange; to critically analyze the impact of shareholders on the share market; to identify the success and failure factors of FII on indian economy and to critically analyze various rules set by government for FII participation in the indian stock exchange. In this research both secondary (books, magazine, journals and articles) and primary data were collected after considering the nature of required information. For primary data, a questionnaire survey was conducted and only structured questions were designed for the survey (questions with multiple options). The questionnaire consisted of 10 structured questions. The key results of the research are as following: FII has a positive influence on the volatility of the exchange rate, meaning that Foreign Investment's inward remittances may increase the volatility of the exchange rate, however, presence of a foreign venture capital investor and indirect ties to foreign venture capitals through syndication networks of own domestic investors help mitigate the problems. Based on this finding, it was tested in this research as how often you find that foreign fiis have restricted the investors in India to have access in stock market.
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