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Consider the following :
1. Foragn currency convertible bonds
2. Foreign institutional investment with certain conditions
3. Global depository receipts
4. Non-resident external deposits
How many of the given above are included in Foreign Direct Investment ?
Only One
Only Two
Only Three
All Four
Incorrect: Foreign Currency Convertible Bonds (FCCBs) are considered as Foreign Portfolio Investment and not as Foreign Direct Investment (FDI).
Incorrect: Foreign Institutional Investment (FII) is typically considered as Foreign Portfolio Investment and not as FDI. However, it can be re-categorized as FDI based on certain conditions, such as stake ownership.
Correct: Global Depository Receipts (GDRs) are instruments in the form of a depository receipt created by an overseas depository bank outside India and issued to non-resident investors against the issue of ordinary shares of the issuing company.
Incorrect: Non-Resident External (NRE) deposits are a form of bank account and are not considered as Foreign Direct Investment.
By: Parvesh Mehta ProfileResourcesReport error
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