145 new FIIs set up shop in FY05: Sebi

A whopping 145 new foreign institutional investors (FII) logged in to the country while registrations from non-traditional countries like Denmark, Italy, Belgium, Canada, Sweden and Ireland went up significantly in the fiscal 2004-05, according to the Securities and Exchange Board of India (Sebi).

Besides, foreign pension funds, which are widely accepted as long-term investors, got themselves registered as FIIs with Sebi.

These include some significant names like CalPERS, UN Pension Fund, General Motors Employees' Pension Fund, US State Govt Pension Funds, Commonwealth of Massachusetts Pension Reserves Investment Trust, Public School Retirement System of Missouri, Tennessee Valley Authority (TVA), Lonmodtagernes Dyrtidsfond and Stichting Gemeenschappelijk Beheer En Administratie Beroepspensioenfondsen Artsen.

The Sebi annual report for the last fiscal released last week said: "Traditionally, most of the institutions registered as FIIs have been from the US and the UK. Though the trend continues, the registration of FIIs from countries like Denmark, Italy, Belgium, Canada, Sweden and Ireland went up in 2004-05."

The regulator also hailed the role of foreign investors in sustaining the market sentiment during the year. "FIIs played a crucial role in sustaining buoyancy in the securities market through portfolio investments," the report said.

The number of FIIs registered in India increased from 540 in 2003-04 to 685 in 2004-05, up 27 per cent. Sub-accounts of FIIs also rose 22 per cent to 1,889 over the previous year's figure.

Category-wise, FIIs like mutual funds, investment trusts, managers of such funds and banks have been in dominance.

The decision of the Central government to enhance the ceilings on various investments by FIIs during the year also helped attracting more foreign investors into the country.

The Union government announced, within the overall external commercial borrowing (ECB), ceiling of $9 billion, a sub-ceiling of $1.75 billion for FIIs investment in government securities and treasury bills, both under 100 per cent debt route and normal 70:30 route for 2004-05.