03 September 2009
Could any 1 elaborately tell me the difference between the qualified institutional investors(QII) and foreign institutional investors (FII) and is it that anyone including a domestic company can be a QII ?
29 September 2009
QII - An institutional investor allowed to privately place securities with other institutional investors without registering the trade with the regulating authorities. This requires that the private placement be for investment purposes and not for resale to the general public;
What Does Foreign Institutional Investor - FII Mean? An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.
Investopedia explains Foreign Institutional Investor - FII The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies.
There are some criteria to become a QII including the size of the fund and restriction on sale of securities in secondary market.