In 1992, foreign institutional investors (FIIs), or foreign portfolio investors, were allowed to participate in the Indian equity market, marking a major step in opening the Indian capital market to foreign investment. FIIs began their operations with a modest investment of ₹13 crore in 1992-93. At that time, domestic institutional investors (DIIs), comprising the erstwhile Unit Trust of India (UTI), six bank-sponsored mutual funds, and four financial institution-sponsored mutual funds, were well-established. In 1993, private-sector mutual funds were also allowed, which, along with the mutual funds already in operation, were expected to act as a counterweight to FIIs. The combined
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