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Foreign Direct Investment(FDI)

Hi this is sasi. Thank you for visiting my blog.

Foreign Direct Investment( FDI) 

In this article,I mainly say about the Foreign Direct Investment ( FDI). 

*  FDI is a type of investment that involves the injection of foreign funds into an enterprises that operates in a different country of origin from the invester.FDI play an extraordinary and growing role in global business. It can provide a firm with new markets and marketing channels, cheaper production facilities, access to new technology ,products, skill and financing. 



* FDI occurs when a company invests in a business that is located in another country and it is investing not less than 10% of shares belonging to the foreign company. It is a non - debt capital flow. FII ( Foreign Institutional Investment). Foreign portfolio investment occurs, when foreign investment in the form of shares, equities and bonds, is made by a foreign company.


* The three main institutions that handle FDI related issues in India are the Foreign Investment Promotion Board ( FIPB), the Foreign Investment Implementation Authority ( FIIA) and the secretariat for Industrial Assistance ( SIA ) activities / sectors not opened to private sector, Viz railways and atomic energy. 

* Since, 20th May, 2011 FDI in Limited Liability Partnership ( LLP) has been allowed. 


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