Q. . With reference to FIIs, consider the following statements:
Which of the statements given above is/are correct?

1 only

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2 only

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Both 1 and 2

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Neither 1 nor 2

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Solution

The correct option is D
Neither 1 nor 2
Explanation:

FII is done to invest in the foreign financial market

Statement 1 is incorrect: Since 2014, any investment beyond 10 $%$ in a company is termed as FDI not FII (foreign institutional investor).

Statement 2 is incorrect: FIIs can invest in unlisted entities, but they participate only through stock exchanges.

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