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READY RECKONER FOR NRI
INVESTMENT
The Ready Reckoner has been
designed to provide at a glance, the various investment
opportunities, which are available to Non Resident
Indian (NRI), Person of Indian Origin (PIO) or
Overseas Corporate Bodies (OCBs). For further
information, relevant guidelines and instructions
of the Reserve
Bank of India or the Department
for Industrial Policy and Promotion may be
consulted.
Non-Resident
Indian/Person of Indian Origin/Overseas Corporate
Bodies
Who
is a Non-Resident Indian?
"Non-Resident Indian (NRI) means a person
resident outside India who is a citizen of India
or is a person of Indian origin".
Who is a Person of Indian
Origin?
For the purposes of availing
of the facilities of opening and maintenance of
bank accounts and investments in shares/securities
in India
Person of Indian origin means
a citizen of any country other than Pakistan or
Bangladesh if
- he at any time, held an
Indian passport
- he or either of his parents
or any of his grand parents was a citizen of
India by virtue of the constitution of India
or Citizenship Act, 1955 (57 of 1995)
- the person is a spouse
of an Indian citizen
For investments in immovable
properties:
Person of Indian origin means
an individual (not being a citizen of Pakistan
or Bangladesh or Afghanistan or Bhutan or Sri
Lanka or Nepal or China or Iran)
- who at any time, held an
Indian passport
- who or either of whose
father or whose grandfather was a citizen of
India by virtue of the Constitution of India
or the Citizenship Act, 1955 (57 of 1955)
What is an OCB?
Overseas Corporate Bodies
(OCBs) are bodies predominantly owned by individuals
of Indian nationality or origin resident outside
India and include overseas companies, partnership
firms, societies and other corporate bodies which
are owned, directly or indirectly, to the extent
of at least 60% by individuals of Indian nationality
or origin resident outside India as also overseas
trusts in which at least 60% of the beneficial
interest is irrevocably held by such persons.
Such ownership interest should be actually held
by them and not in their capacity as nominees.
The various facilities granted to NRIs are also
available with certain exceptions to OCBs so long
as the ownership/beneficial interest held in them
by NRIs continues to be at least 60%.
What are the various facilities
available to NRIs/OCBs?
NRIs/OCBs are granted the
following facilities
- Maintenance of bank accounts
in India.
- Investment in securities/shares
of, and deposits with Indian firms/ companies.
- Investments in immovable
properties in India.
Bank Accounts
NRIs/PIOs/OCBs/ are permitted to open bank accounts
in India out of funds remitted from abroad, foreign
exchange brought in from abroad or out of funds
legitimately due to them in India, with authorised
dealer.
Such accounts can be opened
with banks specially authorised by the Reserve
Bank in its behalf [Authorised Dealer (AD)].
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