| Foreign capital flows are indispensable to growth of emerging market economies to finance the capital needed for excess of investment over the domestic savings. It helps to develop nascent financial markets and overall financial development. Foreign institutional investment is an important component in the capital flows available to a country to pursue its trajectory of economic growth. Foreign Institutional Investment brings in a flow of non-debt creating foreign inflows into any market. Since 1992, when Foreign Institutional Investors were allowed to invest in India, Foreign Institutional Investment flows into India has increased manifold. The aim of this study is to see how foreign institutional investors are regulated. Foreign institutional investment is crucial for an emerging country like India to augment the fund requirement for financial markets and to enhance the economic growth of the country. I have also reviewed the regulatory changes taken by the Securities Exchange Board of India and trends in Foreign Institutional Investment. Over a period of time SEBI has taken many steps to promote the Foreign Institutional Investment. I have presented all the regulatory steps taken by SEBI on yearly basis, this will help the reader to understand how Foreign Institutional Investors has been boosted over a period of time and how the Regulatory body, SEBI has taken steps to stimulate this growth. |