What are the rules pertaining to investments by NRIs in shares and debentures of Indian Cos., on repatriation?
Ans.: NRIs can invest in shares & debentures of Indian Cos on repatriation basis as per general permission granted by RBI provided, • The investee company is not engaged in any activity outside the automatic route of RBI • Subject to sectoral caps on investment as prescribed by RBI • Funds for investment are received through foreign inward remittance or to the debit of NRE/FCNR accounts. • Upon disinvestments, on a recognised stock exchange in India through stock broker at ruling market prices, the proceeds can be repatriated net of Indian taxes. 33. Can NRI place deposits with companies on repatriation basis/ Ans.: Yes, provided the company accepts the deposits under public deposit scheme for period not exceeding 3 years and has obtained necessary ratings etc. RETURNING INDIANS 34.
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