Impact of the entry of foreign financial institutions into the stock market on market capitalisation and capital formation; Lioyds Finance Ltd.

Abstract

With the opening up of the Indian stock markets to foreign investments, the period from July 1993 till date ‘has seen the registration of 191 Foreign Institutional Investor (FIL) with the Securities Exchange Board of India (SEBI). Initially the amount was in trickles, but with the floating of several India dedicated funds and increasing Euro-issues, investments started pouring in. Given this backdrop, this study was undertaken to figure out’ the effect of these huge inflows of foreign capital on ’°market ' capitalisation and capital formation. In addition to this, the Study also tried to find out the effects it had on initiation, the functioning of several institutions. Lastly, the study tries to give the profile of a FII, his likes and dislikes.