Q1) What type of instruments can I invest in ?
A) As an NRI you can freely invest your funds in Government Securities or units of UTI, through Banks in India. Units can also be purchased directly from UTI. You can buy National Savings Certificates issued by the Post Offices but, you are not permitted to invest in bearer securities like Indira Vikas Patra or Kisan Vikas Patra.
Q2) Am I allowed to repatriate the money after I sell these securities ?
A) Yes. If you have invested funds remitted from abroad or out of your NRE/FCNR accounts, the sale proceeds of these securities can be repatriated. Investments out of NRO funds cannot be repatriated and need to be credited to NRO accounts only.
Q3) How about investment in proprietory/partnership firms in India ?
A) Yes. As an NRI you are permitted to make direct investments in proprietory/partnership firms in India on Non Repatriable basis provided the investee firm is not engaged in any agricultural/palntation or real estate business. OCB's cannot avail this facility.
Q4) Can the investment income on investment out of loans / over draft against the securities of NRE / FCNR deposits be repatriated ?
A) RBI allows repatriation of investment income as well as rent on immovable property earned by NRIs on investments made of loans and over drafts against the security of NRE / FCNR deposits. However, the principal amount of the investment continues to be non repatriable.
