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A Foreign Institutional Investor (FII) is a financial investor and invests only in stocks and bonds/. He needs to register with SEBI, can buy/sell several securities on Stock Market and take out his money/profits any time. A foreign Direct Investor invests directly in a project.He is a partner/promoter in the project and stays invested for a longer period. He does not, unlike FII, invests in many companies.

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