Foreign Institutional Investments: Portfolio Investments by Foreign Asset Management Companies, Pension Funds, Mutual Funds etc., which are registered with the SEBI. FIIs can buy and sell listed as well as unlisted securities
Foreign Institutional Investor [FII] is used to denote an investor - mostly of the form of an institution or entity, which invests money in the financial markets of a country different from the one where in the institution or entity was originally incorporated.