Investment in shares/con.debs. on non-repatriation basis

1.         Eligible investor : Non Resident Indians being Indian citizens as also Foreign citizens of Indian origin [ PIO ]

2.         Specified securities

.01           Government dated securities,

.02           Treasury bills,

.03           Units of domestic mutual funds,

.04           Public sector undertaking bonds (PSU) 

.05           Shares of public sector enterprise under dis-investment programme

3.Limitation : There are no limits whatsoever. A NRI may purchase on repatriation or non-repatriation basis without limit 

4. Purchase Consideration.

.01           For repatriation benefits : The investment should be made :

i) From Non Resident External account - NRE

ii) From Foreign Currency Non Resident (B) account - FCNR(B)

iii) Foreign Exchange Remittance from abroad.

.02           For non repatriation basis : The investment should be made : 

i)   From Non Resident External account - NRE

ii) From Foreign Currency Non Resident (B) account - FCNR(B)

iii) Non Resident Ordinary account - NRO

iv) Foreign Exchange Remittance from abroad.

5. Remittance of sale proceeds : 

.01           Sale of securities should be effected through 

i) Registered stock broker on recognized Stock Exchange, or

ii) Surrender to the issuer mutual fund for repurchase / repayment of maturity proceeds.

iii) Tender to the Reserve Bank of India in case of government securities / treasury bills for repayment / remittance of  maturity proceeds 

02   Remittance of  maturity proceeds (after payment of Income Tax)  

i) If purchase on repatriation basis - may be credited to NRE, FCNR(B) accounts or repatriated abroad.

ii) If the purchase on non repatriation basis - may be credited to NRO  account. 

iii) The amount invested in investments under this Scheme on non-repatriation basis normally cannot  be repatriated abroad , however now under the liberal remittance scheme,  balance held in NRO account can be remitted / repatriated abroad upto US$ 1 mn  per financial year