Investor Presentaiton
FDI AND FPI
A person resident outside India may hold foreign investment either as
Foreign Direct Investment or as Foreign Portfolio Investment in
any particular Indian company.
IMF's Balance of Payments Manual 5,
■ FDI is that category of international investment that reflects
☐
the objective of obtaining a lasting interest by a
resident entity in one economy in an enterprise resident in
another economy.
The lasting interest implies the existence of a long-term
relationship between the direct investor and the
enterprise and a significant degree of influence by the investor
in the management of the enterprise.
According to EU law, foreign investment is labeled direct
investment when the investor buys more than 10 per cent of
the investment target, and portfolio investment when the
acquired stake is less than 10 per cent.
FIIS are not interested in management control in general
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