Government of India has allowed investment by Non-resident indiana (NRI)
in the following sectors.
- NRIs are allowed to invest in shares but not in derivatives.
- NRIs can invest any amount of money in primary market but in
secondary market their investment is restricted by 5 % of total paid
up capital of the company.
- In case of debentures also an NRI can invest up to 5% of paid up
value of each series of debentures.
- NRIs can make foreign currency non resident deposit (FCNR
deposit) only in five currencies which are US dollar, UK Pound,
Euro, Japanese yen, Australian Dollar and Canadian Dollar.
- NRIs are allowed to invest in government securities and treasury
bills but not in bearer securities such as NSS, PPF, KVP etc.
- if an NRI was holding any bearer security at the time of change
of resident, he may continue to hold it till maturity but they are
not allowed to renew it.
- NRIs can take an insurance coverage of maximum of Rs.20 lacs.
- Money can be transferred from NRE account to NRO account but not
allowed for NRO to NRE account.
- NRIs can open nri bank account in India.
- NRI real estate- NRIs can invest in real estate , they can by
land, flat, house but they cannot buy agriculture land, farmhouse
and plantation property.
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