Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) are two types of institutional investors that play an important role in the Indian stock market.
FIIs are institutional investors that invest in the Indian stock market from outside the country. They include pension funds, mutual funds, insurance companies, and other financial institutions that are based outside India. FIIs are considered to be an important source of foreign capital for the Indian stock market, and their investment can have a significant impact on the market.
DIIs are institutional investors that are based in India and include mutual funds, insurance companies, banks, and other financial institutions. They invest in the Indian stock market on behalf of their clients, such as individuals, corporations and other institutions. DIIs are considered to be an important source of domestic capital for the Indian stock market.
Both FIIs and DIIs play an important role in the Indian stock market. They can provide liquidity and stability to the market, and their investment can help to support the growth of the Indian economy. However, their investment can also be volatile and can have a significant impact on the market.
It’s important to note that, FII and DII investment is regulated by the Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI), which sets rules and regulations for their investment. They also have to follow the investment limits set by the regulators, which can be changed depending on the market situation.