Investment Opportunities for NRIs/OCBs/PIOs

INTRODUCTION

• FI IN INDIA -AS PER IND POLICY
  
  
• GUIDELINES OF GOI
  
  
• PROVS OF FEMA.SEC 6
  
  
• PROVS OF REGULATIONS
  
  
• UNDER FEMA (FEMA 20)
  
  
• ROUTES OF INVESTMENTS
  
  
• AUTOMATIC-R B I ROUTE
  
  
• SCH I OF FEMA 20
  
  
• GEN PERMN IN R/O ANNX B ACTIVITIES
  
  
• SUBJECT TO SECTORAL CAPS
  
  
• GOVT ROUTE (SIA-FIPB) APPROVAL
  
  
• ACTIVITIES IN ANNX B
  
  

TYPES OF INVESTMENTS

• GOVT SECURITIES
  
  
• M.M.F INSTS/UNITS
  
  
• PSU BONDS
  
  
• COMML PAPERS
  
  
• SHARES OF PSES DISINVESTED BY GOI
  
  
• DEPOSITSIN INDIAN COMPANIES SUBJECT TO APPROVAL BY GOI/NBFC GUIDELINES
  
  
• INVEST NOT PERMITTED IN COMPANIES ENGAGED IN AGRI/PLANT/REALESTATE
  
  
• EQUITY CAPITAL - SHARES/DEBS
  
  
• ON REPAT AND /OR NON-REPAT BASIS
  
  
• UNDER PORTFOLIO INVEST SCHEME
  
  
• NEW ISSUES
  
  
• INVESTING / ACQISITION OF SHARES OF EXISTING COMPANIES
  
  

PORTFOLIO INVEST SCHEME FOR NRI/OCB/PIO's

• ALLOWD TO INVEST IN SECONDARY MKT,UPTO 10% OF THE TOTAL SHARESTHRO STOCK EXCHANGES,BOTH ON REPAT/NON-REPAT BASIS
  
  
• THRO DESIGNATED BRANCHES OF ADs IN FORM NRI (NON-REPAT),RPI(REPAT)
  
  
• FOR OCB's -NRC AND RPC
  
  
• CAN AUTHORISE RESIDENTS AS AGENTS
  
  
• OR STOCK BROKERS,BUT TO ROUTE THRO DESIGNATED BRANCHES
  
  
• CONDITIONS :
  
  
  • WITH OR W/O REPATRIATION
    
    
  • PURCHASE THRO STOCK EXCH AND DESIG BRANCH (ONLY ONE BANK)
    
    
  • UPTO 10% OF P U C OF THE COMPANY
    
    
  • AND 10% OF PUC OF EACH SERIESOF ISSUE FOR ALL NRIs/OCBs TOGETHER
    
    
  • RULING MKT PRICE
    
    
  • NO SHORT SELLING, AND DELIVERY TO TAKE PLACE
    
    

NON-REPAT BASIS

• FORM NRI/NRC
  
  
• ONETIME GEN PERMISSION
  
  
• PAYMENT TO BE RECD THRO INWARD
  
  
• REMITTANCE OR FROM INVESTOR'S
  
  
• NRE/FCNR/NRO/NRSR A/C
  
  

REPAT BASIS

• FORM RPI/RPC
  
  
• ONETIME GEN PERMISSION
  
  
• PAYMENT TO BE RECD THRO INWARD REMITTANCE OR BY DEBIT TO INVESTOR'S NRE/FCNR A/C
  
  
• INVESTMENT BY INDVL NRI/OCB IN LISTED INDIAN COMPANY NOT TO EXCEED 5% OF ITS TOTAL PUC OF EACH SERIES OF PUC OR CONVT DEBS ISSUED BY IT
  
  
• CASES NOT COVERED TO BE REF TO RBI CO
  
  

MONITORING OF PORTFOLIO INVEST SCHEME

• INVEST UPTO 24% ALLOWED IN R/O COMPANIES PASSING GENBODY RESOLN TO THE EFFECT
  
  
• TO APPROACH ECD CO WITH NECCY RESOLN
  
  

HOUSING/REALESTATE DEV SCHEME AND SICK UNITS

• NRI/PIO/OCB ALLOWE UPTO 100% OF NEW ISSUE OF COMPANIES
  
  
• RESTRICTION IN R/O OCB's
  
  
• LOCK-IN PERIOD OF THREE YEARS AND CEILING OF 16% ON REPAT OF PROFITS
  
  
• APPL TO RBIECD CO IN FORM ISD (R)
  
  
• UPTO 100% PERMITTED IN NEW ISSUES OF SICK UNITS FOR REVIVAL
  
  
• APPL TO RBI ECD CO IN FORM PSU
  
  

NOTE

• CITIZENS OF PAKISTAN,BANGLADESH (AND SRILANKA IN SOME CASES) NOT ELIGIBLE FOR ANY FACILITIES GIVEN TO NRI/PIO's
  
  

TRANSFER OF SHARES

• FROM NON-RES TO NON RES
  
  
• RBI 'S GEN PERM AVAILABLE
  
  
• HOWEVER IF TRANSFEROR IS NRI/PIO/OCB AND TRANSFEREE IS NON RES (NOT NRI/PIO/OCB) APPROVAL FROM SIA/FIPB AND RBI IS NECCY
  
  
• TRANSFER/SALE FROM RES TO NON-RES
  
  
• REQUIRES GOI APPROVAL AND THE RBI APPROVAL
  
  
• RBI TO ENSURE PRICE - NOT LESS THAN MKT RELATED/CALCULATED IN T/O CCI GUIDELINES
  
  
• FROM NON-RES TO RES
  
  
• PROR APPROVAL FROM RBI
  
  
• FORM TS 1
  
  
• GEN PERM IF SOLD ON STOCK EXCH
  
  

INVESTMENTS OTHER THAN SHARES/DEBS

• SCHEDULE 5 OF FEMA 20
  
  

NRI/OCB- ON REPAT BASIS

• GOVT SECS
  
  
• PSU BONDS
  
  
• PSE SHARES DISINVESTED BY GOI
  
  

ON NON-REPAT BASIS

• NO CEILING
  
  
• GOVT SECS, MMF's, TRSY BILLS, NSC etc.
  
  

For further details, please contact the Bank of Baroda Branch nearest to you.