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Foreign investment can be made through which of the following routes ? (i) Foreign Direct Investment (FDI) (ii) Foreign Portfolio Investment (FPI) (iii) Private Equity Investment (PEI) (iv) Foreign Venture Capital Investors (FVCI)  Choose the correct answer from the code given below : 

Foreign investment can be made through which of the following routes ? (i) Foreign Direct Investment (FDI) (ii) Foreign Portfolio Investment (FPI) (iii) Private Equity Investment (PEI) (iv) Foreign Venture Capital Investors (FVCI)  Choose the correct answer from the code given below :  Correct Answer (i), (ii), (iii) and (iv)

Capital is a vital ingredient for economic growth, but since most nations cannot meet their total capital requirements from internal resources alone, they turn to foreign investors. Foreign direct investment (FDI) and foreign portfolio investment (FPI) are two of the most common routes for investors to invest in an overseas economy.

  1. A foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country.
  2. Foreign portfolio investment (FPI) instead refers to investments made in securities and other financial assets issued in another country.
  3. Both methods of foreign investment are crucial to global trade and development, however, FDI is often considered the preferred mode and is less volatile.

Other routes that can be used for foreign investment are:

1. Private Equity Investment (PEI):

  • Private equity is an alternative investment class and consists of capital that is not listed on a public exchange. 
  • Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity.

2. Foreign Venture Capital Investors (FVCI) :

  • The term FVCI has been defined under the SEBI (Foreign Venture Capital Investor) Regulations 2000 to mean "an investor incorporated or established outside India, which proposes to make investments in venture capital fund(s) or venture capital undertakings in India and is registered under the FVCI Regulations”

Related Questions

Foreign investment can be made through which of the following routes?
1. Foreign Direct Investment (FDI)
2. Foreign Portfolio Investment (FPI)
3. Private Equity Investment (PEI)
4. Foreign Venture Capital Investors (FVCI)
Choose the correct answer
Both foreign direct investment (FDI) and foreign portfolio investment (FPI) are related to investment in a country. Which of the following is incorrect regarding FDI and FPI?
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Consider the following statements regarding FDI and FPI and choose the correct statement from the alternatives given below 1. Foreign Direct Investment (FDI) is regarded where an investor has a stake of less than 10 percent. 2. Foreign Institutional Investment (FII) is regarded where an investor has a stake of more than 10 percent.
Arrange the steps for building a portfolio for your teaching area from beginning to last step order  (A) Decide who will plan the portfolio  (B) Decide on the purpose of a portfolio  (C) Decide which products and how many samples to put in the portfolio  (D) Identify cognitive skills and dispositions  (E) Build the portfolio rubrics  Choose the correct answer from the options given below : 
Which of the following is/are not FDI policy change(s) alter 2010? 1. Permission of 100 per cent FDI in the automotive sector 2. Permitting foreign airlines to make FM up to 49 per cent 3. Permission of up to 51 per cent FDI under the government approval route in multi-brand retailing, subject to specified conditions 4. Amendment of policy on FDI in single-brand product retail trading for aligning with global practices Select the correct answer using the code given below:
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: The government will ‘very soon’ implement the second set of measures including curb on imports of non-essential items to shore up rupee to 68-70 level against the US dollar, Economic Affairs Secretary Subhash Chandra Garg said, terming the about 12 per cent slide in the currency as a temporary phenomenon. The government had earlier this month announced easing of overseas borrowing norms for manufacturing companies, removal of restrictions on foreign portfolio investors (FPI) investment in corporate bonds and tax benefits on Masala bonds to shore up rupee and check widening of current account deficit.  Courses of action: I. Now, the Centre has prepared a list of non-essential items whose imports can be curbed and also drawn up a separate list of goods whose exports can be boosted with a little policy intervention. II. A group headed by the Commerce Secretary has ‘more or less’ completed its task on finalizing the list. III. The rupee has been battered for over a month now amid sell-offs sweeping emerging markets following a rout in the currencies of Argentina and Turkey. 
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In the question below, a passage is given followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Passage: The board of Vedanta Ltd Limited on Monday approved a proposal for delisting of the company and will seek shareholders approval for the process through e-Voting, the company informed the exchanges. The company has proposed to buy 48.9% shares at Rs 87.5 apiece whereas the book value of the company is around Rs. 141 per share. Retail investors hold 7% of the total shares whereas Institutional Investors hold 41.9% of the total shares. Minimum 90% of shareholders should approve the de-listing for it to happen. The scrip closed today at Rs.110, down 4% from the previous close. Courses of action: I. Vedanta must cajole Institutional shareholders to approve the de-listing. II. Institutional Investors must seek a better deal from the company and vote out this proposal as it is below both the market price and book value. III. Retail investors must come together and complain to the exchanges regarding the company’s attempt to force them out of their shares.
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