Prajna Capital - An Investment Guide

Some conditions that make it possible for NRIs to buy shares of companies here, and some procedures involved A non-resident Indian ( NRI ) is a citizen or person of Indian origin ( PIO ) who resides outside India. Under the Foreign Exchange Management Act 1999 ( FEMA ), a person who is not a 'person resident in India', as defined under Section 2(V) of the Act is considered as a 'person resident outside India'. A PIO could be a citizen of any country but should have held an Indian passport, his parents or grandparents should have been citizens of India by virtue of the Constitution of India or the Citizenship Act 1955, he should be the spouse of an Indian citizen, or should be a person referred to in sub clause (a) or (b). Investments by PIO in domestic securities are treated in the same as investments by NRIs and require the same approvals, while being eligible for the same exemptions. A NRI or PIO can open a demat account with any depository participant ( D...

Here are outlines of rules governing NRI investments in India Non-resident Indian ( NRI ) means a 'person resident outside India' who is a citizen of India or is a 'person of Indian origin' . Under the Foreign Exchange Management Act, 1999 ( FEMA ), a person who is not a 'person resident in India' , as defined under Section 2 (v) of the Act is considered a 'person resident outside India'. 'Person of Indian Origin' ( PIO ) means a citizen of any country other than Bangladesh or Pakistan, if he at any time held an Indian passport; or, he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955; or the person is a spouse of an Indian citizen, or a person referred to in sub-clause (a) or (b). An investment by a PIO in Indian securities is treated just as investments by non-resident Indians and requires the same approvals, and enjoys the same exemptions. NRIs can pur...