NRI's CORNER
F.E.M.A.
Securities other than shares/con.debs
Investment in securities other than shares / convertible debentures
 
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.
 
alttag