| Portfolio Investment Scheme for NRIs |
Under this scheme, NRIs are permitted to acquire shares
/debentures of Indian companies or units of domestic Mutual Funds through the stock
exchange/s in India.
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The application is to be submitted to Reserve Bank
through a designated branch of a bank in India in one of the prescribed forms, i.e.
NRC/NRI/RPC/RPI.
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Ans.III
Reserve Bank has authorized a few branches of each bank
to conduct the business under Portfolio Investment Scheme on behalf of NRIs . These
branches are the main branches of major commercial banks located close to the stock
exchange/s. NRIs will have to route their applications through any of the designated bank
branches who have authorizations from Reserve Bank.
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Ans.IV
No. Each NRI has to select one branch for this purpose
for investment on repatriation/ non-repatriation basis.
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Ans.V
It is advisable to maintain a bank account with the
designated branch for administrative convenience.
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Ans.VI
Reserve Bank approval is valid for a period of five years
from the date of issue. This can be renewed further by making a request by means of a
simple letter.
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Ans.VII
There is an overall ceiling of 5% of paid- up equity share capital of the company/paid-up value of each series of convertible debentures for purchase by NRIs /OCBs. The overall ceiling can be raised to 30% if the company concerned passes a special resolution to that effect in its general body meeting and a board resolution. Individually, NRIs/OCBs can make investment upto 1% of the paid-up equity share capital/each series of convertible debentures. However, there is no ceiling on investment in domestic Mutual Funds.