Question
Which of the following statements regarding Foreign
Institutional Investment (FII) in India are correct? 1. Non-Resident Indians (NRIs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS) of Reserve Bank of India. 2. The ceiling for overall investment for FIIs is 24 per cent of the paid-up capital of the Indian company. 3. Securities and Exchange Board of India monitors the ceilings on FII investments in Indian companies on a daily basis. Select the correct answer using the code given below:Solution
Statement 3 is incorrect: RBI monitors the ceilings on FII investments in Indian companies on a daily basis.
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