Which of the following is not an item of foreign portfolio investment?
Investment in a joint venture is foreign direct investment, because the foreign partner takes a lasting equity stake with a say in management. Foreign currency convertible…
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Which of the following is not an item of foreign portfolio investment?
Answer and explanation
Correct answer A
Investment in a joint venture is foreign direct investment, because the foreign partner takes a lasting equity stake with a say in management. Foreign currency convertible bonds, global depository receipts and purchases of securities by foreign institutional (now foreign portfolio) investors are financial investments without management control, so they are portfolio investment.
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Gujarat SET (GSET)