Can a Non-resident Indian invest in Government Securities/Treasury bills and Corporate debt?
Under the FEMA Regulations only NRIs and SEBI registered FIIs are permitted to purchase Government Securities/Treasury bills and Corporate debt. The details are as under; A. A Non-resident Indian can purchase, (1) i) Government dated securities (other than bearer securities) or treasury bills or units of domestic mutual funds; ii) bonds issued by a public sector undertaking(PSU) in India; iii) shares in Public Sector Enterprises being disinvested by the Government of India. (2) They can also invest, on non-repatriation basis, in dated Government securities (other than bearer securities), treasury bills, units of domestic mutual funds, units of Money Market Mutual Funds in India, or National Plan/Savings Certificates on non-repatriation basis. The guidelines for these schemes are framed by the concerned Government agencies. B. A SEBI registered Foreign Institutional Investor may purchase, on repatriation basis, dated Government securities/treasury bills, non-convertible debentures/bonds
