Foreign Institutional Investor (FII) An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds. Investopedia Says: The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies. Related Terms: Elephants Foreign Direct Investment - FDI Hedge Fund Institutional Investor Mutual Fund Pension Fund Qualified Domestic Institutional Investor - QDII Securities And Exchange Board Of India - SEBI |