Investment in Shares/Convertible Debentures 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