Published by: Sai Om Publications Sai Om Journal of Commerce & Management A Peer Reviewed National Journal FOREIGN INSTITUTIONAL INVESTORS: TRENDS & INFLOWS IN INDIAN STOCK MARKET

The Indian government gives an open enticement to individuals, companies and other institutions to invest directly or indirectly in India by adopted New Economic Policy in 1991 and they started investing in various financial instruments of money market, capital market, forex market and capital assets of real estates and production activities directly. The investment made in the financial securities directly or indirectly by investors is termed as foreign institutional investors and investment in capital securities by investors known as foreign direct investment. These two types of foreign investment play an important role in attracting the foreign capital with in the country. The purpose of this paper is to analyse the role of foreign institutional investors in the development of economy. The net investments made by investors in the proportionate share of gross purchases and gross sales is collected for the period of 1992 to 2013 to check the compound annual growth rate of FIIs. To check the significant level of calculated CGR, the method of t-value is used. It founds that the calculated values are significant and reliable to use. The other attempt made to check the future predictions of net investment in their proportionate share that depicts the positive attitude of foreigners toward India. This paper also revealed that SEBI & RBI are the major institutes to regulate & control the FIIs. Th