What is investment through Primary & Secondary markets ?
Investment made in Initial Public Offerings of shares/debentures of new or existing companies is called primary markets investments. Here, no individual permission of RBI is required, since the Companies offering shares/debentures normally take the permission. Applications can be made out of funds drawn from NRE/NRO a/c on repatriation/non- repatriation basis as may be specified in the terms of the NRI issue. Buying and Selling of shares/debentures of Indian Companies through recognized stock exchanges is called investments through Secondary markets.
