Whether NRIs residing in erstwhile Bilateral Group can invest in the repatriable investment of shares?
Though NRIs residing in erstwhile Bilateral Group of countries are not debarred from making repatriable investment with freely convertible currency in shares directly under section 29 of FERA ECM and notification no. FERA. 150/93-RB dated 26.4.93, but permission from RBI is required to make payment of shares through the said designated branch of the authorised dealers under the portfolio investment scheme. Thereafter, the investor of Bilateral Group counties can invest funds in repatriable shares through stock exchange under portfolio investment scheme. In other cases where the companies issuing shares with repatriation benefits has obtained permission from RBI to issue shares to NRIs of Bilateral group and specifically mention in their prospectus about the eligibility criteria shares can be acquired. In absence of it NRIs residing in erstwhile Bilateral Group should obtain permission of RBI.
