Question

Q. With reference to FIIs, consider the following statements:

Which of the statements given above is/are correct?

• A.
  1 only
• B.
  2 only
• C.
  Both 1 and 2
• D.
  Neither 1 nor 2

Answer 1

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.