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Friday, February 3, 2023

Financial Actions and Task Force- Definition, Review and Analysis

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 Mainly 2 Types of Investors:   

1) Retail Investors: 

Money Watch

Retail Investors Means like you and me who limit to invest only upto 2 lakhs in Indian Market. Retail investors are major part of the Indian share market. So, The Ups and downs majorly depends on the volume of the retail investors.

2) Institutional Investors: 

Institutional Investors consists organizations like Mutual Funds, Pension Companies, And FII, DII is also a part of Institutional Investor. 

Compare to retail investors institutes invest with high quantity and lot size.

So, Market Fluctuate on the basis of this institutional investors and also a FII’s and DII’s. 


FII ( Foreign Institutional Investors ) are thoes who invest in Indian market. 

e.g. Amazon Invest 2 lakh crores in Reliance Industries ( FII Invest 2 lakh crores in India ).

Means when abroad countries invest in India then we says that FII.

If any foreign individual investor want to invest in India then at that time investor need minimum 50 millions dollars and that’s very big amount.

How Small Foreign Investors Invest In Indian Market?    

Then India come with New concept that is QFI ( Qualified Foreign Investors ).

This Following Steps to Invest as a FII:

1) Individual Should need to Link with QFI.

2) QFI is also Need to link with CDSL and NSDL.

3) Individual investor should need to follow FATF Guidelines.

FATF ( Financial Actions And Task Force ).

This Guidelines are Here to follow:

a) Anti Money Laundering.

b) Anti Terrorist Financial Affairs.

What Is meant by CDSL and NSDL? 

CDSL and NSDL this two are depository of our India and QFI need to link anyone of this.

When we buy share of a company then that share is come from depositories and even when we sell.

As a market settlement T+2 this 2 days take for depository procedure.

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