Foreign Institutional Investor - FII

DEFINITION OF 'FOREIGN INSTITUTIONAL INVESTOR - FII'
An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.

INVESTOPEDIA EXPLAINS 'FOREIGN INSTITUTIONAL INVESTOR - FII'

The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies. 

Sourced from Investopedia.

Investments in Indian Securities by Qualified Foreign Investors.

This material is a summary of the guidelines issued by The Securities & Exchange Board of India and is given hereunder for information only. 

QFIs shall include individuals, groups or associations that are:

1. Resident in a country that is a member of the Financial Action Task Force (FATF) or a country that is a member of a group which is a member of FATF and
2. Resident in a country that is a signatory to IOSCO’s MMOU – or a signatory of a bilateral MOU with Securities and Exchange Board of India (SEBI).

Residents of the following countries* shall be eligible to invest as a QFI as per the definition mentioned above.
Australia
Czech Republic
Iceland
New Zealand
Slovakia
Austria
Denmark
Italy
Norway
Slovenia
Bahrain
Estonia
Japan
Oman
South Africa
Belgium
Finland
Republic Of Korea
Poland
Spain
Brazil
France
Lithuania
Portugal
Sweden
Bulgaria
Germany
Luxembourg
Romania
Switzerland
Canada
Greece
Malta
Russia
UAE
China
Hong Kong
Mexico
Saudi Arabia
United Kingdom
Cyprus
Hungary
Netherlands
Singapore
USA
 
* It may be noted that unless appropriately authorised (OR exempt) by the regulations in the relevant jurisdiction, Indian custodians & brokers would not be able to provide their services.
A QFI should neither be a person resident in India nor should be registered with the SEBI as a Foreign Institutional Investor (‘FII’), sub-account or Foreign Venture Capital Investor.
A QFI should be set up with a SEBI - registered Qualified Depository Participant (QDP) to commence activities. The QDP shall provide inter alia custody services.