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FII and DII

Institutional Investors are those who invest large sum of money in all kinds of investments like stock markets, mutual funds, real properties etc.

Who are Institutional investors?

All typical and large investors like banks, financial institutions, insurance companies fall under this category. Institutional investors are basically divided in to 2 types, Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII).

Foreign Institutional Investors (FII):

FII are non residents of those countries in which they invest. For instance, all institutions outside India who invest in India are FII of Indian stock market. Relatively the investment amount that is used to invest by FII is more when compared with Domestic investors. FII needs to register with SEBI before they invest in Indian markets. Presently around 1500 FIIs investing in Indian Stock markets.

Domestic Institutional Investors (DII):

DII are the institutions who invest in India being a resident of India. These type of investors are also called as Indian Institutional Investors. When compared to FII, rules are marginally liberal for DII and the fund amount of DII is far less when it comes to investment. The DII activity is also based on National Stock Exchange and Bombay Stock Exchange.

Posted By: Pankaj                 Posted on: 2016-04-08 15:49:08                 Updated on: 2016-06-06 18:10:45