Which one of the following would be considered as Foreign Direct Investment?
- A. A foreign company buying shares in stock exchanges in India
- B. A foreign country pension fund investing in Indian stock markets
- C. A foreign merchant banker buying shares from Indian stock markets
- D. A foreign entity setting up an educational institution in India ✓
Correct Answer: D. A foreign entity setting up an educational institution in India
Explanation
Foreign Direct Investment (FDI) refers to a long-term investment involving direct business operations or physical asset creation (like setting up an institution), unlike FPI which deals with financial assets like shares.
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