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

The application is to be submitted to Reserve Bank of India through a designated branch of a bank in India in one of the prescribed forms, i.e. NRC / NRI / RPC / RPI.

Reserve Bank of India 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 authorization from Reserve Bank of India.

There is an overall ceiling of five per cent 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 up to one per cent of the paid-up equity share capital / each series of convertible debentures. However, there is no ceiling on investment in domestic Mutual Funds.