A study on the Role of Foreign Institutional Investors Flls in the Indian Capital Market

Abstract

Fll's are institutions established or incorporated outside India, which proposes to make investment in Indian securities. The Fll's have been playing key role in the Indian capital market, since their entry in the early 1990's. Their importance has been growing overtime and their net investment is on the rise in the recent past. This portfolio flows by Fll's bring with them great advantage as they are engines of growth while lowering the cost of capital in the emerging market. This paper indicates whether Foreign Institutional investors have emerged as the most dominant investor group in the domestic market or not.