Non_Resident Indian fall under following categories:

Indian citizens who stay abroad for employment or for carrying on vocation or for any other purpose in circumstances
indicating an in of stay outside India.

Indian citizens working abroad on assignments with foreign Governments/government agencies or International/Regional Agencies like UNO,IMF,World Bank,etc.

Officials of the Central and State Governments and Public Sector Undertakings deputed abroad on temporary assignments or posted to their offices (including Indian Diplomatic missions) abroad.

Two types of Investment opportunities are available to non - resident Indians.Investment with Repatriation Benefits.Investment
under Non_Repatriation basis.

No, the Reserve Bank has granted permission to the authorized Dealer bank to purchase such shares/Debentures on behalf of NRIs/OCBs.

You are requested to fill in any one of the prescribed forms NRC/NRI/RPC/RPI by the Dealer bank. This form is submitted to RBI ,who further grants permission.

1)Open a bank account with RBI approved dealing bank branch.

2)Open a Demat account & a Stock Broking account with H. K. Securities

NRIs are permitted to make direct investments in proprietary/partnership concerns in India as also in shares/debentures of Indian companies. They are also permitted to make portfolio investments i.e. purchase of shares/debentures of Indian companies through stock exchanges in India. These facilities are granted both on repatriation and non repatriation basis.

No. Reserve Bank has granted general permission to non- resident individuals of Indian nationality/origin to invest by way of capital contribution in any proprietary or partnership concern in India on non- repatriation basis provided the invest concern is not engaged in any agricultural/plantation activity or real estate business. This facility is, however, not available to OCBs.

No. Indian companies have been granted general permission to accept investments on non-repatriation basis, in shares/convertible debentures by way of new/rights/bonus issue provided the invested company is not engaged in agricultural /plantation activity or real estate business(excluding real estate development i.e. development of property and construction of houses). or chit fund or is not a Nidhi company.

No. However, the firms/companies concerned are required to file declarations with Reserve Bank in form DIN giving particulars of the investments made. within ninety days from the date of the investment.

Yes.

OCBs can make such investments only in domestic public/ private sector Mutual Funds. They can also make investments in Money Market Mutual Funds.

Yes. Applications for necessary permission should be made to Reserve Bank (Central Office) by the concerned Indian Company in form ISD

Yes. Reserve Bank permits NRIs , on application in form FNC 7, to purchase shares/debentures of existing Indian companies on non-repatriation basis. An undertaking about non-repatriation is to be given in form NRU.

No. Reserve Bank has granted general permission to companies in India to enter the overseas addresses of the shareholders in their books in such cases provided the companies obtain undertakings from the holders that they will not seek repatriation of any income or sale proceeds of the security.

Yes. Income/interest accruing during the financial year 1994-95 and onwards on bank deposits and investments held by NRIs with non-repatriation benefits will be eligible for repatriation as under:

Up to U.S. $ 1,000 or its equivalent in full and one-third of the balance income earned during the financial year 1994-95;

Up to U.S. $ 1,000 or its equivalent in full and two third of the balance income earned during the financial year 1995-96;

The entire income earned during the financial year 1996-97 and onwards.

The entire income earned during the financial year 1996-97 and onwards.

Note : The investment/principal amount of deposits made/held on non-repatriation basis will, however, not be allowed to be repatriated abroad.

NRIs should designate a branch of an authorised dealer through whom the remittance of income is to be made and make an application in form RCI to the designated branch giving details of incomes earned during the previous financial year along with a Chartered Accountant's Certificate. The designated branch will allow the remittance of net amount (i.e. after payment of tax) or credit it to NRE/FCNR account of the applicant.

NRIs can make investments in new issues of shares/convertible debentures of Indian companies under direct investment schemes such as 24% scheme/40% scheme/100% scheme. They can also invest in the schemes of domestic Mutual Funds floated by public/private sector institutions/companies and bonds issued by public sector undertakings, Non-resident investors are not required to apply for permission to invest but the company concerned will have to obtain permission from Reserve Bank.

Under the 24% scheme, Indian companies engaged or proposing to engage in any activity including finance, hire purchase, leasing, trading or other services, establishment of schools/colleges. etc.(except agricultural/plantation activities) are allowed by Reserve Bank to issue shares/debentures to NRIs with repatriation benefits to the extent of 24% of the new issue.

Under the 40% Scheme, Indian companies engaged or proposing to engage in the following activities are allowed by Reserve Bank to issue shares/debentures to NRIs with repatriation benefits to the extent of 40% of the new issue.

Industrial and Manufacturing units

Hotels with 3, 4 or 5 star category

Hospitals and diagnostic centres

Shipping companies

Development of computer software

Oil exploration services

Yes. There is no ceiling or restriction on the amount of remittable dividend. Remittance of interest/dividend to NRI investors will be allowed by authorised dealers under the posers delegated to them.

Under 100% Scheme, NRIs are permitted to invest in high priority industries listed in Annexure III to the Statement on Industrial Policy dated 24th July 1991 of the Government of India up to 100% of the new issue.

Dividend/interest can be remitted freely except in the case of consumer goods industries where the outflow on account of dividend is required to be balanced by export earnings of the company either in the year of declaration of dividend or in the years prior to the declaration of dividend, This requirement is enforced for a period of seven years from the commencement of commercial production.

The NRI investor need not apply to Reserve Bank. Application for necessary permission under the schemes should be made by the Indian company/firm to the Central Office of Reserve Bank in Mumbai in form ISD/ISD(R).

Yes. NRIs are permitted to undertake revival of sick industrial units by making bulk investment in them to the extent of 100 per cent either by way of purchase of existing equity shares or in the form of subscription to new equity issues.

Yes. Investment upto 100% in the new issue of equity shares/convertible debentures of Indian companies engaged in the followed areas is allowed-

i) Development of serviced plots and construction of built up residential premises;

ii) Real estate covering construction of residential and commercial premises including business centres and offices;

iii) Development of township;

iv) City and region level urban infrastructure facilities including roads and bridges;

v) Manufacture of building material;

vi) Financing of housing development.

Applications for the purpose should be made by the concerned Indian company to the Central Office of Reserve Bank in Mumbai in form ISD(R).

Yes. Repatriation of original investment will be permitted after a lock-in period of three years from the date of issue of the equity shares/convertible debentures. In addition, OCBs will be permitted to repatriate net profit (upto 16 per cent) arising from the sale of such investment after the lick-in period of three year. Annual dividend/interest on equity shares/debentures can, however, be freely remitted subject to payment of tax.

Yes. Applications for necessary permission should be made to Reserve Bank (Central Office) by the concerned Indian company in form ISD.

The concerned Fund/Public Sector Undertaking should obtain necessary permission from Reserve Bank for issue of units/bonds to NRIs. Applications for the purpose are required to be made to the Central Office of Reserve Bank in form ISD(R).

Yes. NRIs will be permitted to invest up to 100% in 100% Export Oriented Units subject to obtaining approval from the Government of India ,Ministry of Industries (SIA) for setting up the EOU. In the case of units located in Export Processing Zones, approval from the Development Commissioner of the concerned zone is required to be obtained. Thereafter an application should be made to the concerned regional office of Reserve Bank in form ISD alongwith copy of Government approval for necessary clearance under FERA 1973.

Yes. Reserve Bank has granted general permission to NRIs to acquire shares of PSEs on their bids being successful provided the holding of a single NRI investor does not exceed one per cent of the paid up capital of the PSE concerned , the purchase consideration /bid money is paid by way of remittance from abroad or by debit to his NRE/FCNR accounts.

The concerned company should approach Reserve Bank for issue of rights entitlement to NRIs in the prescribed form if on repatriation basis. However, rights entitlement on non-repatriation basis would be covered by the general permission (Please see Answer to Question No. 52 and 53).

NRIs can make an application to Reserve Bank by a letter detailing therein the folio number of the shares held and the manner in which the rights are being sold.

The concerned Indian company should approach Reserve Bank for issue of bonus shares to NRIs if the original investment is on repatriation basis. Issue of bonus shares in respect of investment on non-repatriation basis is covered by general permission (Please also see Answer to Question No. 52).

Yes. Authorised dealer have been permitted to grant loans/overdrafts abroad to NRIs through their overseas branches and correspondents against collateral of the shares/debentures of Indian companies held by them, provided the concerned shares/debentures were acquired on repatriation basis.

Yes, subject to payment of Income tax, Capital Gains tax etc. payable, if any.

Under this scheme, NRIs are permitted to acquire shares /debentures of Indian companies or units of domestic Mutual Funds through the stock exchange/s in India.

The application is to be submitted to Reserve Bank through a designated branch of a bank in India in one of the prescribed forms, i.e. NRC/NRI/RPC/RPI.

Reserve Bank has authorised a few branches of each bank to conduct the business under Portfolio Investment Scheme on behalf of NRIs . These branches are the main branches of major commercial banks located close to the stock exchange/s. NRIs will have to route their applications through any of the designated bank branches who have authorisation from Reserve Bank.

No. Each NRI has to select one branch for this purpose for investment on repatriation/ non-repatriation basis.

It is advisable to maintain a bank account with the designated branch for administrative convenience.

Reserve Bank approval is valid for a period of five years from the date of issue. This can be renewed further by making a request by means of a simple letter.

There is an overall ceiling of 5% of paid- up equity share capital of the company/paid-up value of each series of convertible debentures for purchase by NRIs /OCBs. The overall ceiling can be raised to 30% if the company concerned passes a special resolution to that effect in its general body meeting and a board resolution. Individually, NRIs/OCBs can make investment upto 1% of the paid-up equity share capital/each series of convertible debentures. However, there is no ceiling on investment in domestic Mutual Funds.

Yes. NRIs are permitted to keep deposits with public limited companies in India for a minimum period of three years subject to certain ceilings/conditions. Application for the purpose is required to be made by the company receiving the deposits through an authorised dealer.

Yes. Permission for placement of funds in fixed deposits with firms/companies in India is granted by Reserve Bank on application by the depositor or the deposit accepting firm/company, on non-repatriation basis, subject to certain ceilings/conditions.

No. Authorised dealers have been permitted to undertake sale of Government securities/units on behalf of NRIs without prior approval of Reserve Bank. Sale/maturity proceeds can be remitted abroad if the original investment was made out of funds remitted from abroad or funds in NRE/FCNR accounts. Otherwise, they will have to be credited to NRO account of the holder.

No. Transfer of shares/debentures of Indian companies by NRIs to other non-residents does not require permission of Reserve Bank. However, the transferee NRI would need permission for purchase of such shares for which an application is required to be made to Reserve Bank in form FNC 7.

Yes. General exemption has been granted by Reserve Bank for transfer/sale of shares/debentures/bonds by NRIs/OCBs through stock exchanges if such transfers are made in favour of an Indian citizen or a person of Indian origin or a company incorporated in India and sale proceeds thereof are credited to NRO account.

In the case of shares /debentures /bonds acquired by NRIs through stock exchanges under the Portfolio Investment Scheme, general exemption has been granted for transfer through stock exchanges provided the sale is arranged through the same designated branch through whom they were purchased. In other cases, applications for necessary permission is required to be made to Reserve Bank in form TS 4.

NRIs are required to submit application in form TS 1 to Reserve Bank for sale of shares/debentures by private arrangements.

Yes. Reserve Bank has granted general permission to NRIs to transfer, by way of gift, shares, bonds and debentures of Indian companies held by them with Reserve Bank's permission to their resident close relative/s.

a)Non_resident (External) Rupee Accounts [NRE accounts]

b)Non_Resident Rupee Accounts [NRO accounts

When a resident becomes nonresident, his existing bank accounts are treated as NRO accounts. If such resident do not have any account in India then NRO account can only be opened by inverd foreign remittances only.

Reserve Bank has directed that only undernoted credit and debit transactions may be allowed in the accounts by authorised dealers:

CREDITS:

Proceeds of remittances received in any permitted currency from abroad through normal banking channels or any permitted currency tendered by the accountholder during his temporary visit to India or transfers from rupee accounts of non_resident banks.
Legitimate dues in rupees of the account holder in India.
Sale proceeds of investments done with the general or specific permission of Reserve Bank.

DEBITS:

All local payments in rupees. The operations do not allow, interalia, making available foreign exchange to any person resident in India against reimbursement in rupees or in any other manner in India.

No, Funds lying in the NRO account cannot be remitted. However , Reserve Bank has allowed to remit the interest earned on the balances in NRO account which represents original foreign inward remittances.

NRE account is a convertible foreign currency account designated in rupees.

Any non_resident Indian holding Indian Passport or foreign Passport and OCB can open and maintain NRE account.

Yes, Only foreign currency notes up to US$5000 can be credited in the NRE account. However if the sum exceeds US$ 5000 then NRI has to produce the Currency declaration form.

Reserve Bank has directed that following credits should not be allowed in NRE accounts:

Funds remitted from abroad in fulfillment of an undertaking given by the account holder.

Foreign currency notes/bank notes and travelers cheques tendered by the power of attorney or any person other than the account holder.

Rupee proceeds of foreign currencies/bank notes or travelers cheques tendered to a bank other than the one maintaining NRE account or to a money changer on the strength of encashment certificate issued by them.

Reserve bank has directed that authorised dealers or other bankers may allow under_noted debit transactions in NRE accounts.

Local disbursements.

Remittances abroad.

Transfer to NRE/FCNR accounts of the same account holder.

Transfers to NRE accounts of persons other than the account holder, for any purpose.

Investment in shares/securities commercial paper of Indian companies or for purchase of immovable property in India provided such investment is covered by general/special permission granted by Reserve bank.

Any other transaction if covered under general or special permission granted by Reserve bank.

FCNR is a foreign currency account designated in five foreign currencies i.e.. Pound Sterling, U.S.Dollar, Deutsche Mark, Japanese Yen and Euro.

There are absolutely no restrictions on withdrawal of funds from FCNR account. Even investments can be done on repatriable basis from FCNR account.

This account enables non_resident who come back to India for permanent settlement to open and maintain foreign currency accounts with authorised dealers in India.

This account is for the salaried non_resident Indians in Gulf and other regions. In this account principal cannot be repatriated but interest is eligible for repatriation. The interest offered on this account is much more than other non_resident accounts.

Maximum ceiling by individual NRI/OCB is 5% of paid up

share capital of the company. The overall ceiling for all

NRIs/OCBs together is 10%. However the overall ceiling

for all Iris/OCBs can be raised to 30% with the prior

permission of Reserve Bank.

Open an account with the authorized Dealer Bank Branch.

# Fill up the Dealer Bank’s application to open the account.

# Fill up the RPI/RPC form provided by the Dealer Bank.

# Sign both the above mentioned forms.

# Certified/notified copy of Passport & visa is to be submitted.

Open the Depository Account with your Bank & the Stock Broking account with H. K. Securities.

# Fill in the Depository account application form & the Stock Broking application form and fulfilling the requisite account opening norms.

(Both Depository & Stock Broking forms are available on our website.Refer our account opening page for more details.)

RPI form :

Forms for non_resident individuals of India nationality or origin to purchase shares of Indian companies through stock exchange in India with benefits of repatriation of capital invested and income earned thereon………….

RPC form :

Forms for an Overseas company/partnership firm/society/trust or any other corporate body owned by non_residents of Indian nationality or originate purchase shares with repatriation benefits.

NRI form has to be filled by non_resident individuals to trade without repatriation filled benefits.

Forms for an overseas company/partnership firm/society/trust or any other corporate body owned by Indian nationality or origin to trade without repatriation benefits.

You are requested to fill in any one of the rescribed forms_NRC/NRI/RPC/RPI by the Dealer bank. This form is submitted to RBI ,who further grants permission.