To attract foreign investment in India, Government is offering several facilities to Non Resident Indians (NRIs), Persons of Indian Origin (PIO) and Overseas Corporate Bodies (OCBs).
NRIs/PIOs/OCBs/ are permitted to open bank accounts in India out of
funds remitted from abroad, foreign exchange brought in from abroad or
out of funds legitimately due to them in India, with authorised dealer.
Reserve Bank has granted general permission to NRIs/PIOs, for
undertaking direct investments in Indian companies, under the Automatic
Route purchase of shares under Portfolio Investment Scheme, investment
in companies and proprietorship/partnership concerns on non-repatriation
basis and for remittances of current income. NRIs/PIOs do not have to
seek specific permission for approved activities under these schemes.
Direct Investment Opportunities Available to NRIs/PIOs/OCBs
1. Automatic Route Of RBI With Repatriation Benefits: NRIs/OCBs
can invest in shares/convertible debentures of Indian companies under
the Automatic Route without obtaining Government or RBI permission
except for a few sectors where FIPB/SIA permission is necessary, or
where the investment can be made only up to a certain percentage of paid
2. Investment With Government Approval: Investments not eligible
under the Automatic Route, are considered by the Foreign Investment
Promotion Board(FIPB) a high Powered inter-ministerial body under the
chairmanship of Secretary, Department of Industrial Policy &
Promotion, SIA, subject to sectoral limits/norms. These investments also
enjoy full repatriation benefits.
3. Other Investments With Repatriation Benefits: