NRI Investments

NRI Investment in India is a constructive step taken by the government to stabilize the national economy. The Reserve Bank of India has allowed the NRIs, Overseas Corporate Bodies (OCBs) as well as the Person of Indian Origin (PIOs) to make direct investments in companies having Indian origin. This is in association with the Automatic Route purchase of shares under Portfolio Investment Scheme. In reality, this facility is extended to the companies that have partnership or proprietorship concerns as well.

Rules for NRIs to invest in India

According to the Section 2(V) of the Foreign Exchange Management Act 1999, following rules are applicable for NRIs eligible to invest in India:

• A person who resides outside India or has taken up employment outside India;

• Conducting the business activities outside India

• Staying outside India for an indefinite or uncertain period of time

• A person who has been in possession of Indian passport (provided he/she is not a citizen of Pakistan or Bangladesh)

• Either of his/her parents or grandparents were Indian citizens