Your Ad Here

Thursday, January 15, 2009

NRI Investments in India

NRI India Investment has been subjected to ample neglect over the years. It is only in the past few years that the Indian Government is paying utmost interest in this matter as NRIs all over the globe are being encouraged to bring fresh funds for the economy.

The population of NRIs have experienced a manifold increase in the past few years which has been made possible by the sharp hike in recruitment levels for overseas jobs. According to a recent Business Standard report, in the last three years, 850,000 people went to West Asia alone. And even as the official figure for Indians living in the US is 2 million, unofficial estimates put it as 3.5 million. The immigration list to Canada and Australia continues to grow as well.

The ministries concerned have made sure that rules and regulations are simplified to make investments from NRI's easier. Investment in bank deposits and company deposits may be made by NRIs. They are subject to different rules and investments both with repatriation and non-repatriation benefits are permitted under various schemes.

Criteria for investments from NRI's

* NRI investment in India are permitted in partnership and proprietorship firms. This can be done by subscribing shares or debentures of Indian companies.
* NRIs can also now place funds in company deposits.
* NRIs who undertake not to seek at any time repatriation of the capital invested in India and the income earned thereon are permitted to invest on non-repatriation basis.
* NRIs also have the option of investing in mutual funds floated by domestic public sector and private sector mutual funds on non-repatriation basis. All they have to do is to make their applications to the Reserve Bank.
* They can also invest in money market mutual funds (MMMFs) floated by commercial banks and financial institutions with authorization from the apex bank or the Securities and Exchange Board of India (SEBI) which is the market regulator.
* Another option for NRIs is to invest in securities of the Central or any state government and National Plan/Savings Certificates by making remittances from abroad or out of funds held in their NRE/FCNR accounts. Thus the road has already been paved for investment in India and what better people to get it from than NRIs.

No comments: