Economies like India, which offer relatively higher growth than the developed economies, have gained popularity as attractive investment destinations for foreign institutional investors (FIIs). Investors are optimistic on India and sentiments are favorable following the government’s announcement of a series of reform measures. FII’s net investments in Indian equities and debt have grown at a tremendous pace, backed by expectations of an economic recovery, falling interest rates and improving earnings outlook. Money invested by foreign institutional investors (FII), is often called ‘hot money’ because they can be pulled out at…
