NRI Investment without Repatriation benefits |
No. Reserve Bank has granted general permission to non-
resident individuals of Indian nationality/origin to invest by way of capital contribution
in any proprietary or partnership concern in India on non- repatriation basis provided the
investor concern is not engaged in any agricultural/plantation activity or real estate
business. This facility is however not available to OCBs.
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No. Indian companies have been granted general permission
to accept investments on non-repatriation basis, in shares/convertible debentures by way
of new/rights/bonus issue provided the investor company is not engaged in agricultural
/plantation activity or real estate business(excluding real estate development i.e.
development of property and construction of houses) or chit fund or is not a Nidhi
company.
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Ans.III
No. However, the firms/companies concerned are required
to file declarations with Reserve Bank in form DIN giving particulars of the investments
made. within ninety days from the date of the investment.
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OCBs can make such investments only in domestic public /
private sector Mutual Funds. They can also make investments in Money Market Mutual Funds.
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Yes. Applications for necessary permission should be made
to Reserve Bank (Central Office) by the concerned Indian Company in form ISD,
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Ans.VII
Yes. Reserve Bank permits NRIs , on application in form
FNC 7, to purchase shares/debentures of existing Indian companies on non-repatriation
basis. An undertaking about non-repatriation is to be given in form NRU.
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Ans.VIII
No. Reserve Bank has granted general permission to
companies in India to enter the overseas addresses of the shareholders in their books in
such cases provided the companies obtain undertakings from the holders that they will not
seek repatriation of any income or sale proceeds of the security.
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Yes. Income/interest accruing during the financial year 1994-95 and onwards on bank deposits and investments held by NRIs with non-repatriation benefits will be eligible for repatriation as under:
Note : The investment/principal amount of deposits
made/held on non-repatriation basis will, however, not be allowed to be repatriated
abroad.
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Ans.X
NRIs should designate a branch of an authorized dealer through whom the remittance of income is to be made and make an application in form RCI to the designated branch giving details of incomes earned during the previous financial year alongwith a Chartered Accountant's Certificate. The designated branch will allow the remittance of net amount (i.e. after payment of tax) or credit it to NRE/FCNR account of the applicant.