general permissions for an nri
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.
The Reserve Bank of India has now further simplified financial transactions by NRIs/PIOs by granting general permissions to:
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To resident individuals, partnership/proprietorship concerns to avail of interest bearing rupee loans from NRIs/PIOs out of funds remitted by them from abroad or out of funds held in their bank accounts in India, on non-repatriation basis, subject to certain conditions one of them being that the rate of interest on such loans should not exceed Bank Rate plus two percentage points.
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NRIs/PIOs to transfer by way of gift shares held by them in Indian companies and to transfer by way of gift immovable property held by them in India subject to compliance with other applicable rules/regulations including the provisions of Foreign Contribution Regulations Act, 1976 by the charitable trust/organisation concerned.
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All domestic public/private sector mutual funds for issue of Units to NRIs/PIOs on bot repatriation as well as non-repatriation basis.
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NRIs/PIOs to place deposits wit Indian firms, on non-repatriation basis and wit Indian companies including Non-banking financial companies on bot repatriation and non-repatriation basis.
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NRIs/PIOs for sale of shares acquired under direct investment Schemes on stock exchanges in India.
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NRIs /PIOs for transfer of shares, by way of sale under private arrangement to antoher NRI or to a resident.
NRIs/PIOs/OCBs have been granted General Permission to invest in Government Securities and Treasury Bills.
Taking into account the facilities that are already available, and the above new measures, NRIs/PIOs will not have to seek specific permission of the Reserve Bank for a whole variety of approved financial/investment transactions. This should considerably reduce paper work and time taken for undertaking such transactions.
After the above changes come into effect, the areas in which facilities available to NRIs/PIOs will be the same as available to domestic residents except relating to investment by NRIs/PIOs in real estate/agriculture and plantation business Chit Funds, Nidhis or Print Media.
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