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.
Tags: The importance of FIIs , The importance of FIIs on Indian economy, FIIs in Indian stock market, FII's investment in Indian stock market
[...] A research is recommended to study comparative implications of FIIs in portfolio equity and that of FDI in relation to Indian National Stock Exchange LIMITATIONS Due to limited time and resources, the researcher had to downsize my plan on various fronts. Firstly, getting an appointment with the respondents was not easy as in some cases they had tight schedule in their professional activities, whereas some were found unwilling to respond the questionnaire. Secondly, due to provided limited time the researcher could not conduct all the questionnaires face-to-face or personally, and thus in many cases he had to satisfied with telephonic conversation. [...]
[...] In Indian context, for instance, noise trading by institutional investors may not be so much, precisely because all the trades they do are based entirely on delivery (RBI, 2005) Determinants of FIIs According to IAPM,( regarded as the standard international asset pricing model), liberalization of the stock market is likely to bring down the cost of equity that the concerned country bears by creating scope for the sharing of risk between foreign and domestic agents (Henry, 2000b). In the wake of the liberalization of the stock market, people ought to be able to notice a rise in the equity price index of an emerging economy. [...]
[...] To study how FII plays an important role in National stock exchange To study the working mechanism of 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 To critically analyze various rules set by government for FII participation in Indian stock exchange RESEARCH QUESTION: Q.What is the impact of FIIs on Indian National stock exchange? And to study how effective the government is in its role of liberalizing and controlling the National stock exchange STRUCTURE OF THE DISSERTATION The dissertation is in five chapters namely introduction, literature review, methodology, data analysis and findings, conclusion and recommendations. [...]
[...] In positive way In negative way How often it is found that FII flows and stock market in India have a kind of volatility that is high and related Always Very often Sometimes Never The role of liberalization is Indian stock market so far has been Positive Negative The role of foreign FII in Indian stock market so far has been . ? Positive Negative Do you believe that foreign FII have restricted the investors in India to have access in stock market? [...]
[...] This research is classified as exploratory, where the purpose was to study the impact of FII on National stock exchange and to identify whether their importance in the development of Indian economy RESEARCH METHODOLGY: QUANTITATIVE AND QUALATATIVE Research methods can be qualitative, quantitative or both (Schiffman and Kanuk, 2000). The selection of the particular research method depends on the kind of information required. Qualitative method collects, analyzes, and interprets data that cannot be meaningfully quantified, that is, summarized in the form of numbers. [...]
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