Concept:Foreign Direct Investment (FDI) involves a long‑term investment by a foreign entity that gives the investor control over the business operations in another country.
Explanation:FDI is different from Foreign Portfolio Investment (FPI).
In FPI, the investor only buys equity shares or securities without seeking control.
Buying shares on a stock exchange (Options A, B, C) is FPI, not FDI.
FDI typically includes setting up subsidiaries, acquiring majority equity, or establishing new ventures abroad.
The foreign entity manages day‑to‑day operations and has a lasting interest.
FDI provides non‑debt financial resources and is often directed at productive assets.
India allows FDI in most sectors under automatic or government routes, with a few prohibitions (e.g., atomic energy, gambling, tobacco).
Setting up an educational institution in India by a foreign entity involves direct ownership and control.
This qualifies as FDI because it creates a physical presence and operational control.
Answer:Option D – A foreign entity setting up an educational institution in India.