There are several investment opportunities for
Non Resident Indians. Here are guidelines for NRI investment
NRI Investment
To attract foreign investment in India, Government is
offering several facilities to Non Resident Indians (NRIs), Persons of
Indian Origin (PIO) and Overseas Corporate Bodies (OCBs).
NRIs/PIOs/OCBs/ are permitted to open bank accounts in India out of
funds remitted from abroad, foreign exchange brought in from abroad or
out of funds legitimately due to them in India, with authorised dealer.
Reserve Bank has granted general permission to NRIs/PIOs, for
undertaking direct investments in Indian companies, under the Automatic
Route purchase of shares under Portfolio Investment Scheme, investment
in companies and proprietorship/partnership concerns on non-repatriation
basis and for remittances of current income. NRIs/PIOs do not have to
seek specific permission for approved activities under these schemes.
Direct Investment Opportunities Available to NRIs/PIOs/OCBs
1. Automatic Route Of RBI With Repatriation Benefits: NRIs/OCBs
can invest in shares/convertible debentures of Indian companies under
the Automatic Route without obtaining Government or RBI permission
except for a few sectors where FIPB/SIA permission is necessary, or
where the investment can be made only up to a certain percentage of paid
up capital.
2. Investment With Government Approval: Investments not eligible
under the Automatic Route, are considered by the Foreign Investment
Promotion Board(FIPB) a high Powered inter-ministerial body under the
chairmanship of Secretary, Department of Industrial Policy &
Promotion, SIA, subject to sectoral limits/norms. These investments also
enjoy full repatriation benefits.
3. Other Investments With Repatriation Benefits:
| 1. |
Investment in Domestic Mutual Funds |
| 2. |
Investment in Bonds Issued By Public
Sector Undertakings |
| 3. |
Purchase of Shares Of Public Sector
Enterprises (By NRIs/PIOs/OCBs) |
| 4. |
Deposits with Companies (For A Minimum
Period Of Three Years) |
| 5. |
Investment in Government
Securities/Shares |
4. Investment Upto 100% Equity Without Repatriation Benefits:
| 1. |
Capital Contribution to any
Proprietary or Partnership Concern |
NRIs can invest by way of capital
contribution in any proprietary or partnership concern in India
provided the firm or the proprietary concern is not engaged in any
agricultural/plantation activities or real estate business or Print
Media on non-repatriation basis subject to the certain conditions. |
| 2. |
New Issues of Shares/Debentures of
Indians Companies |
NRIs/OCBs as been ranted general
permission to subscribe to the shares/convertible debentures of an
Indian company on non-repatriation basis, and to an Indian company
to issue shares or convertible debentures by way of new/rights/bonus
issue to NRIs/OCBs on non-repatriation basis provided that the
investee company is not engaged in agricultural/plantation
activities or real estate business (excluding real estate
development i.e. development of property or construction of houses)
or chit fund or is not a Nidhi company. |
5. Other Investments by NRIs/OCBs Without
Repatriation Benefits
- Investment in Non Convertible Debentures
- Money Market Mutual Funds
- Deposits With Companies
- Commercial Papers (OCBs are presently not permitted)
