NRIs can invest in India as under :
- Investment under Automatic Route with repatriation benefits
- Investment with Government approval
- Other investments with repatriation benefits
- Investments up to 100% equity without repatriation benefits
- Other investments by NRIs/OCBs without repatriation benefits.
1. AUTOMATIC ROUTE OF RBI WITH REPATRIAT-
ION BENEFITS
NRIs 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 permission is necessary, or where the investment can be made only upto a certain percentage of paid up capital. For full details of the Automatic Route, investors may see website of Department of Industrial Policy & Promotion.
2. INVESTMENT WITH GOVERNMENT APPROVAL
Investment 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 Economic Affairs, subject to sectoral limits/norms. These investments also enjoy full repatriation benefits.
3. OTHER INVESTMENTS WITH REPATRIATION
BENEFITS
1. Investment in units of domestic mutual funds
2. Investment in bonds issued by
public sector undertakings
3. Purchase of Shares of Public sector enterprises being
disinvested by GOI.
4. Investment in government dated
securities (other than bearer
securities) or Treasury Bills |
NRIs are permitted to invest in the secutities with repatriation benefits. |
4. INVESTMENTS UPTO 100% EQUITY WITHOUT REPATRIATION BENEFITS
| 1. Capital contribution to any proprietary or partnership concern |
NRIs can invest by way of capital contribution in any proprietary or partnership concern in India provided the firm or the proprietary concern is not engaged in any agricultural/plantation activities or real estate business or print media on non- repatriation basis subject to certain conditions. |
| 2. New issues of shares/ debentures of Indian companies |
NRIs have been granted general permission to subscribe to the shares/ convertible debentures of an Indian company on non- repatriation basis, and to an Indian company to issue shares or convertible debentures by way of new/rights/bonus to NRIs on non- repatriation basis provided that the investee company is not engaged in agricultural/plantation activities or real estate business (excluding real estate development i.e., development of property or construction of houses ) or chit fund or is not a Nidhi Company. |
5. OTHER INVESTMENTS BY NRIs WITHOUT
REPATRIATION BENEFITS
(i) Investment in Non Convertible Debentures
(ii) Money Market Mutual Funds
(iii) Deposits with companies
(iv) Commercial Papers |
Case Studies 
