NRI's CORNER
F.E.M.A.
Shares/con.debs. on non-repatriation basis
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
 
alttag