- Can NRIs obtain loans for buying a house/flat for residential purpose from financial institutions providing housing finance?
- Reserve Bank has granted general permission to certain financial institutions providing housing finance to grant housing loans to non-resident Indians for acquisition of houses/flats for self-occupation subject to certain conditions.
- Can authorized dealer grant loans to NRIs for acquisition of a flat/house for residential purposes?
- Authorized dealers have been granted permission to grant loans to non-resident Indian nationals for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. However, repayment of the loan should be made within a period not exceeding 15 years out of inward remittance.
- What are the schemes available to NRIs for direct investments in India with repatriation benefits?
- In the new issues of shares/convertible debentures of Indian companies, there are direct investment schemes such as 24% scheme/40% scheme/100% scheme.
- Domestic Mutual Funds floated by public/private sector institutions/companies and bonds issued by public sector undertakings is also a good option.
How can an NRI obtain permission of Reserve Bank for investment in a sick industrial unit?
FDI in Retail Sector
FDI can supplement and complement the Indian industry and make it globally competitive, open up export markets and provide access to international quality goods and services. It can raise resources through technological up gradation, optimal utilization of human and natural resources, and backward and forward linkages.
There are promising fields like the food processing sector in the country. Foreign retail giants are willing to buy processed food from the country. Foreign direct investment (FDI) in retail space, specialized goods retailing like sports goods, electronics and stationery is also being contemplated. The government has to walk a tightrope to ensure a `level playing field' for everyone.
FAQs on Portfolio Investment by NRIs/ PIOs
What are the regulations regarding Portfolio Investments by Foreign Institutional Investors (FIIs)?
- FIIs include Asset Management Companies, Pension Funds, Mutual Funds, and Investment Trusts as Nominee Companies, Incorporated / Institutional Portfolio Managers or their Power of Attorney holders, University Funds, Endowment Foundations, Charitable Trusts and Charitable Societies.
- SEBI acts as the nodal point in the registration of FIIS. RBI has granted General Permission to SEBI Registered FIIs invest in India under the Portfolio Investment Scheme.
- All FIIs and their sub-accounts taken together cannot acquire more than 24% of the paid up capital of an Indian Company. Indian Companies can raise the above mentioned 24% ceiling to the Sectoral Cap / Statutory Ceiling as applicable by passing a resolution by its Board of Directors followed by passing a Special Resolution to that effect by its General Body.
What are the regulations for Foreign Venture Capital Investment?
A Foreign Venture Capital Investor registered with SEBI may make investment in a Venture Capital Fund for an Indian Venture Capital Undertaking, in the manner and subject to the terms and conditions specified by the RBI
What are the regulations regarding Portfolio Investments by NRIs/PIOs
- Non Resident Indian (NRIs) and Persons of Indian Origin (PIOs) can purchase/sell shares/convertible debentures of Indian companies on Stock Exchanges under Portfolio Investment Scheme. For this purpose, the NRI/PIO has to apply to a designated branch of a Bank which deals in Portfolio Investment. All sale/purchase transaction is to be routed through the designated branch.
- An NRI or a PIO can purchase shares up to 5% of the paid up capital of an Indian company. All NRIs/PIOs taken together cannot purchase more than 10% of the paid up value of the company. (This limit can be increased by the Indian company to 24% by passing a General Body resolution).
- The sale proceeds of the repatriable investments can be credited to the NRE/NRO etc. accounts of the NRI/PIO whereas the sale proceeds of non-repatriable investment can be credited only to NRO accounts.
- The sale of shares will be subject to payment of applicable taxes.