What's the difference between FDi and FII

FDI or Foreign Direct Investment is direct investment into the business of the domestic country by foreign countries.It can be done either by buying the domestic company or by extending its operations.

FII or Foreign Institutional Investment,on the other hand is a passive investment by the foreign companies into the financial instruments of the domestic company.FIIs are limited only to investing in stocks and bonds and are regulated by FEMA.