E-Paper
Investing in India
Q. Can NRIs invest their funds in Government securities or Units of Unit Trust of India (UTI)? Ans. Yes. NRIs are freely permitted to invest their funds in Government securities or Units of UTI through authorised dealers. Units can also be purchased directly from UTI.
Government Securities/Units
Q. Can NRIs invest their funds in Government securities or Units of Unit Trust of India (UTI)?
Ans. Yes. NRIs are freely permitted to invest their funds in Government securities or Units of UTI through authorised dealers. Units can also be purchased directly from UTI.
Q. Can NRIs make investments in National Savings Certificates issued by Post Offices in India?
Ans. Yes. Investments in National Savings Certificates can be made by NRIs subject to the terms and conditions applicable to the sale/issue of such certificates. However, NRIs are not permitted to invest in bearer securities like Indira Vikas Patra/Kisan Vikas Patra.
Q. Can Government securities/units be freely transferred or sold?
Ans. Yes provided the transfers/sales are arranged through an authorised dealer. Units can, however, be repurchased directly by UTI.
Q. Are sale/maturity proceeds of Government securities/Units/National Savings Certificates allowed to be repatriated abroad?
Ans. If such securities were purchased out of funds remitted from abroad or out of NRE/FCNR accounts, sale/maturity proceeds can be repatriated. Sale/maturity proceeds of securities purchased out of funds in NRO accounts can only be credited to NRO accounts and cannot be remitted abroad.
Interest earned during the financial year 1994- 95 and onwards can, however, be remitted to the extent permitted by Reserve Bank.
Company Shares/Debentures
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.
