The emergence of FIIs in stock market has been a debatable issue. Beside others, the above may be attributed to the absence of adequate empirical evidence about the impact of FIIs on the volatility and return of the underlying stock market. Since, India is not an exception of the above, in this paper we have made an attempt to review the existing studies on the subject under reference with the aim to conclude this debatable issue. The finding reveal that according to the results of around fifty percent of the studies reviewed here in the volatility of the underlying stock market has increase significantly. The remaining all studies (except one), however indicate no impact on the volatility. About the impact on returns, the majority of the research studies find that FIIs arrival increased the return in the host country market.