Nri Investment: Understanding The Process

By Author: Vijay K Shetty
Total Articles: 2541
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Investing is a big thing nowadays and a lot of people are becoming more aware of how to participate in this financial activity. For a NRI, participating in this venture can lead to future success until the next meal.

Foreign investment is very important for any nation. It helps in strengthening economic conditions and it also helps in improving international relations as well. Letting in foreign investors has been very pivotal in transforming India and establish its economic power and influence in various sectors.

The government of India is now extending investment opportunities to Overseas Corporate Bodies, Persons of Indian Origins as well as the Non Resident Indians. They are allowed to open a bank account in India from the remittances that they get abroad. There are also some banks that allow NRIs and PIOs to undertake direct investments to some Indian companies. They can d so by using several methods likes portfolio investment schemes. There are a lot more NRI Investment options that you can choose. Let us understand what they are and how they work.

Automatic route with some benefits of repatriation
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... The NRI Investment can be done by investing on shares of Indian companies using an Automatic route and that means it does not require RBI or government permission. The exception is on a number of sectors where certain permissions are required. In some cases, the investment can only be made up to a certain percentage of the capital.

Government approved investments
Those investments that are not eligible for the first one can go for this kind of NRI Investment. These are considered by the FIPB of the Foreign Investment Promotion Board. These kinds of investments are limited to various norms. These also have repatriation benefits. Speaking of repatriation benefits, there are some other NRI Investments that you can find with expatriation. You can go for domestic mutual funds, public sector bonds, shares, company deposits as well as government securities and shares.

100% equity (no repatriation)
If you can make an investment by means of capital contribution to a concerned partnership or proprietary. The only thing to be aware of with this one is that the company should not engage on agriculture or plantation industry as well as print or real estate.

If you want to try and participate in NRI Investment, you should be aware of the language of business and investment and the ups and downs of this venture. You have to ask the help of an expert since this is a lot of analysis, work and processing. If you do not have an expert help you, you might end up with wasted investments. Investing is a really big thing so you have to do some deep thinking if you really wish to venture to this activity. You need to always update yourself about the investment world and just always keep in mind your limitations as well as the strength of your investments.

Vijay K Shetty,
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