Foreign investments refer to investments made by residents of one country in the financial assets and production process of another country. For example, an American investor invests in the shares of HDFC Bank (an Indian bank). Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayFII does not invest directly in the company by purchasing shares. They usually take the secondary route. Foreign investments in the country may take the form of investments in listed companies (i.e. FII investments), investments in listed or unlisted companies other than through the stock exchanges. These may include foreign FDI or private equity/venture capital investments, investments through American Depository Receipts/Global Depository Receipts (ADR/GDRs), or investments by non-resident Indians (NRI) and people of Indian origin (PIO) in various countries. Economies like India, which generate comparatively higher growth than developed economies, have gained favor among investors as attractive investment destinations for foreign institutional investors (FIIs). Investors are bullish on India and sentiments are favorable following the government's announcement of a series of reform measures in recent months. According to Ernst & Young's (EY) International Capital Confidence Barometer (CCB) – Technology, India ranks third among the most attractive investment destinations for technology deals globally. India is the third largest start-up base in the world, with over 4,750 technology start-ups and around 1,400 new start-ups supported in 2016, according to a Nasscom report. FII's net investments in Indian equities and debt touched all-time highs in the last fiscal year, supported by expectations of an economic recovery, lower interest rates and an improving outlook for profits. Net investment by FIIs in Indian equities and debt stood at US$ 7.46 billion in 2016-17 (up to April 14, 2017). The cumulative value of FII investments between April 2000 and December 2016 stood at US$ 183.69 billion. Offshore funds and India-focused exchange-traded funds (ETFs) saw net inflows of $565 million in November and contributed to the overall total reaching nearly $6.5 billion in November. 2017. Equity mutual funds recorded the 17th consecutive month of net inflows with record inflows of Rs 20,362 crore ($3.18 billion) in August 2017 due to the rally in Indian stock markets. Equity funds received an inflow of Rs 2.86 trillion ($44.6 billion) between November 2016 and October 2017. The total market capitalization (M-cap) of all companies listed on the Bombay Stock Exchange ( BSE) hit an all-time high of Rs. 146 trillion ($2.27 trillion) on November 19, 2017, supported by positive sentiment in the market as a whole. India has become one of the most successful countries in terms of mergers and acquisitions (M&A) deals. M&A activity in India more than doubled year-on-year to US$61.26 billion in 2016-17. In 2017, India saw record private equity investments worth US$24.4 billion. Private equity (PE) investments in the logistics sector increased by 9.