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| NRI Services |
| Investments by
Non-Residents in General |
| Foreign investment in India is
subject to policy guidelines framed by the Government of India
from time to time in accordance with its Industrial Policy. In
terms of the Industrial Policy announced by the Government of India
on 24th July 1991 followed by subsequent guidelines issued by them,
foreign equity upto 50%/51%/74%, as the case may be, is permitted
by Reserve Bank under the Automatic Route in specified industries/services
sector.Applications which do not conform to the parameters of the
Automatic Route, are required to be made to the Secretariat for
Industrial Assistance (SIA), Ministry of Industry, Government of
India, New Delhi. Foreign Institutional Investors are permitted
to invest in all securities in primary and secondary markets in
India as per guidelines issued by Ministry of Finance, Government
of India, New Delhi. Investment in bank deposits, company deposits,
etc. may be made by individuals of Indian nationality or origin
resident outside India (NRIs) and overseas corporate bodies predominantly
owned by such persons (OCBs). They are subject to different rules
and investments both with repatriation and non-repatriation benefits
are permitted under various schemes.Foreign investment in India
is also subject to regulation through the various provisions of
FERA 1973 (now FEMA, 1999). However, once foreign investment is
approved by Government under its foreign investment and industrial
policy, requisite approvals under FERA 1973 are granted by Reserve
Bank in pursuance of the Government approval/guidelines.
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| The following persons constitute
Non-resident Indians |
Indian citizens who stay abroad
for employment or for carrying on any business or vocation or for
any other purpose in circumstances indicating an indefinite period
of stay outside India.Indian citizens working abroad on assignments
with foreign Governments, Government agencies or international/multinational
agencies like United Nations Organisation (UNO), International
Monetary Fund (IMF), World Bank (IBRD), etc.Officials of Central
and State Governments and public sector undertakings deputed abroad
on assignments with foreign Governments/agencies/ organisations
or posted to their own offices (including Indian Diplomatic Missions)
abroad.
Non-resident Indians become resident in India only when they come
back to India for employment or for carrying on in India any business
or vocation or for any other purpose indicating an indefinite period
of stay in India. They are not regarded as persons resident in
India during their short visits to India, say, on holiday, leave,
etc. |
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| Persons of Indian origin |
For the purpose of the facility
of opening and maintenance of various types of bank accounts and
making investments in shares and securities in India, a Foreign
citizen (not being a citizen of Pakistan or Bangladesh) is deemed
to be a person of Indian origin if :-
- He at any time held an Indian passport, or
- He or either of his parents or any of his grand parents
was a citizen of India by virtue of the Constitution of India
or Citizenship Act, 1955.
A spouse (not being a citizen of Pakistan or Bangladesh) of an
Indian citizen or of a person of Indian origin is also treated
as a person of Indian origin for the above purposes provided the
bank accounts are opened or investments in shares/securities in
India are made by such persons only jointly with their NRI spouses. |
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| Do Contact Us for more details. |
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