Investments in Securities/Shares and Company Deposits

A.

Government Securities/Units

B.

Company Shares/Debentures

 

B.1

Direct Investment without Repatriation benefits

 

B.2

Direct Investment with Repatriation benefits

 

B.3

Portfolio Investment Scheme

C.

Company Deposits

D.

Sale/Transfer of Shares/Securities
 

A. Government Securities/Units
  Can NRIs invest their funds in Government securities or Units of Unit Trust of India (UTI)?
  Can NRIs make investments in National Savings Certificates issued by Post Offices in India?
  Can Government securities/units be freely transferred or sold?
  Are sale/maturity proceeds of Government securities/Units/National Savings Certificates allowed to be repatriated abroad?
 

B. Company Shares/Debentures
  B.1 Direct Investment without Repatriation benefits
  Is permission of Reserve Bank required for NRIs to invest in proprietary/partnership concerns on non-repatriation basis?
  Is permission of Reserve Bank required for making investments in new issues of Indian companies on non-repatriation basis?
  Are any formalities required to be completed by NRIs for getting the benefit of the above general permission?
  Can NRI/OCBs make investments in domestic public/private sector Mutual Funds or Money Market Mutual Funds floated by commercial banks and public/private sector financial institutions on non-repatriation basis?
  Can NRIs make investments in non-convertible debentures of Indian companies?
  Can NRIs purchase existing shares/debentures of Indian companies by private arrangement?
  Is it necessary for a resident, holding securities in Indian companies, to secure any approval from Reserve Bank on his becoming a non-resident for holding such securities?
  Is income/interest earned on investments/deposits held in India by NRIs on non-repatriation basis allowed to be repatriated?
  What is the procedure to be followed for seeking repatriation in such cases?
  B.2 Direct Investment with Repatriation benefits
  What are the schemes available to NRIs for direct investments in India with repatriation benefits?
  What is 24% Scheme?
  What is 51% Scheme?
  Is remittance of interest/dividend to NRI investors freely allowed under the 24%/51% Scheme?
  What are the specified industries under the 100% Scheme?
  Is dividend/interest earned in respect of investments made under the 100% Scheme freely remittable to the NRIs abroad?
  How does an NRI obtain permission of Reserve Bank for investment under the 24% or 51% or 100% Scheme?
  Besides the 24%, 51% and 100% Schemes is there any other scheme for investment by NRIs in the equity of Indian companies?
  Is the capital brought into India for revival of a sick industrial unit allowed to be repatriated?
  How can an NRI obtain permission of Reserve Bank for investment in a sick industrial unit?
  Under the existing Industrial Policy, investment by foreign collaborators upto 50%/51%/74% of the equity is allowed by Reserve Bank on repatriation basis in certain high priority industries. Can NRIs take up the balance 50%/49%/26% equity in such cases on repatriation basis?
  Can NRIs make investments in companies engaged in real estate development in India?
  What is the procedure for obtaining Reserve Bank permission in this regard?
  Will repatriation of the original investment and/or dividend income be freely permitted?
  Are investments in Air Taxi operations permitted to be made by NRIs/OCBs?
  Can NRIs invest in non-convertible debentures on repatriation basis?
  What is the procedure to be followed for making investment in the schemes of domestic Mutual Funds with repatriation benefits?
  Can NRIs invest in 100% Export Oriented Units on repatriation basis?
  Can NRIs acquire shares disinvested by Government of India in Public Sector Enterprises (PSEs) by inviting sealed tenders?
  What is the procedure for issue of rights entitlement to NRIs?
  What is the procedure required to be followed by NRIs for renunciation of rights entitlement?
  What is the procedure for issue of bonus shares?
  Can NRIs obtain loans abroad against the collateral of shares/debentures of Indian companies?
  Can sale proceeds of the shares/debentures be remitted abroad for liquidation of outstandings against such loans/overdrafts?
  B.3 Portfolio Investment Scheme
  What is the Portfolio Investment Scheme?
  What is the procedure for making applications?
  What is a designated branch?
  Whether NRI/OCB can apply through more than one designated branch?
  Is it necessary to maintain a bank account with the designated branch through whom the application is made?
  Is there any ceiling on the investment under the Portfolio Investment Scheme?
 

C. Company Deposits
  Can NRIs keep deposits with companies in India with repatriation benefits?
  Do NRIs need permission of Reserve Bank for placing funds in fixed deposits with firms/companies on non-repatriation basis?
  Are NRIs permitted to invest in Commercial Paper (CP) issued by Indian companies?
 

D. Sale/Transfer of Shares/Securities
  Is permission of Reserve Bank required for sale/transfer of Government securities/units?
  Is permission of Reserve Bank required by NRIs for sale/transfer of shares/debentures of Indian companies to other NRIs?
  Can NRIs transfer/sell their shares/debentures/bonds held on non-repatriation basis to residents freely?
  What is the procedure for sale/transfer of shares/debentures/bonds held by NRIs with repatriation benefits?
  What is the procedure to be followed by NRIs for sale/transfer of shares/debentures to residents by private arrangements?
  Can shares/debentures be given away as gifts to relatives?
  Can rupee securities, shares, bonds, debentures be transferred by way of gift to registered charitable trusts/organisations?