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With increasing opportunities for work cropping up worldwide, more and more Indians are opting to migrate to other countries in the search for greener pastures.
However, being Indians we still feel the need to stay connected to the place of our birth and therefore, we try to make investments in India through different avenues.
Let's take a look at how Non-Resident Indians (NRIs) can make investments in India.
Text: BankBazaar.com
BankBazaar.com is an online marketplace where you can instantly get loan rate quotes, compare and apply online for your personal loan, home loan and credit card needs from India's leading banks and NBFCs.
Copyright 2008 www.BankBazaar.com. All rights reserved.
Can NRIs make investments in India?
NRIs can make investments in all the investments options which are available to Resident Indians. However, Persons of Indian Origin can only make investments in non-agricultural businesses in the country.
Are NRIs allowed to deal in stocks and shares in India?
Yes. NRIs can invest in shares and stocks by:
Directly subscribing to shares and debentures of Indian companies on a repatriable or non-repatriable basis -- (a) through the Portfolio Investment Scheme and (b) through government securities, certificates and units of UTI through remittances from their domestic accounts or remittances from abroad.
BankBazaar.com is an online marketplace where you can instantly get loan rate quotes, compare and apply online for your personal loan, home loan and credit card needs from India's leading banks and NBFCs.
Copyright 2008 www.BankBazaar.com. All rights reserved.
What kind of an account does an NRI use to make payments for invesments?
An NRI needs to use an:
BankBazaar.com is an online marketplace where you can instantly get loan rate quotes, compare and apply online for your personal loan, home loan and credit card needs from India's leading banks and NBFCs.
Copyright 2008 www.BankBazaar.com. All rights reserved.
What are the 24% and 40% Schemes?
The 24% Scheme allows Indian companies, except those engaged in agricultural activities, to issue up to 24% of their shares and debentures to NRIs with repatriation benefits.
Similarly, the 40% scheme allows for purchase of equity, preference shares and convertible debentures not exceeding 51% of the face value of each issue. Repatriation of upto 40% of the new issue is allowed. Under this scheme, NRIs can invest in new projects or in expansion and diversification projects of existing companies.
BankBazaar.com is an online marketplace where you can instantly get loan rate quotes, compare and apply online for your personal loan, home loan and credit card needs from India's leading banks and NBFCs.
Copyright 2008 www.BankBazaar.com. All rights reserved.
What are the investment options available for NRIs?
NRIs can invest in:
BankBazaar.com is an online marketplace where you can instantly get loan rate quotes, compare and apply online for your personal loan, home loan and credit card needs from India's leading banks and NBFCs.
Copyright 2008 www.BankBazaar.com. All rights reserved.
What are the different tax benefits available to NRIs?
However, gifts received on the occasion of marriage or from relative or under will or inheritance would not be subject to tax.
BankBazaar.com is an online marketplace where you can instantly get loan rate quotes, compare and apply online for your personal loan, home loan and credit card needs from India's leading banks and NBFCs.
Copyright 2008 www.BankBazaar.com. All rights reserved.