(3) In his 2013-14 budgetspeech, P Chidambaram proposeda shift to an internationalclassification underwhich less than 10per centstake in a company will betreated as foreign institutionalinvestment (FII) or portfolioinvestment and anythingabove that as FDI. FDI entities,which typically comethrough joint ventures andstrategic partnerships, havegreater powers in terms ofshare transactions and votingrights, while FIIs can onlytrade in open market transactionsand have limited votingrights. FDI entities are allowedto conduct privatetransactions while FIIs arenot.