The Securities and Exchange Board of India (SEBI) plays a crucial role in regulating the securities market in India, ensuring transparency, fairness, and investor protection. For Non-Resident Indians (NRIs) looking to invest in the Indian securities market, understanding and adhering to SEBI's rules and regulations are essential. Here are some necessary rules outlined by SEBI for NRIs:
SEBI has raised the investment limits for NRIs and OCIs in Foreign Portfolio Investors (FPIs), allowing them to contribute up to 100% of the corpus, up from the previous collective limit of 50%. Previously, individual limits were capped at 25%. Now, NRIs and OCIs can invest up to 100% in an FPI, either directly or through entities under their control, significantly enhancing their opportunities to participate in Indian equities.
NRIs have the option to repatriate funds invested in India, including capital gains and dividends, subject to certain conditions and limits prescribed by the Reserve Bank of India (RBI). Repatriation of funds must be done through designated banking channels and in compliance with foreign exchange regulations.
NRIs must complete the KYC process with their chosen broker or financial institution before investing in the Indian securities market. KYC documentation typically includes identity proof, address proof, and in some cases, overseas address proof.
Also watch this video
All Foreign Portfolio Investors (FPIs) are required to submit PAN and KYC details for each investor to the depositories. If these details are missing, the enhanced limits can still be applied, but only if the FPI’s investment manager is associated with a SEBI-registered mutual fund or an entity regulated by the RBI.
The Securities and Exchange Board of India (SEBI) now permits non-resident Indians (NRIs) to hold up to 100 percent in a Foreign Portfolio Investor (FPI). This change facilitates NRIs who wish to invest in Indian shares, potentially unlocking a new category of investors in India. Despite the large diaspora that remits significant sums of money, NRI investments in Indian stocks have remained minimal.
Don't miss: Money Matters: Expert Shares Insights On Indian Stock Market Trading For NRIs
As per the Securities and Exchange Board of India (SEBI), “NRIs have an avenue for directly investing in the Indian securities markets, including in units of Indian Mutual Fund Schemes, through the Portfolio Investment Scheme (PIS) route under Schedule III of the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (“NDI Rules”) on a repatriation basis, and under Schedule IV of the NDI Rules (by NRIs/OCIs and entities owned and controlled by NRIs/OCIs) on a non repatriation basis.”
Don't miss: Money Matters: Expert Tips On Gold Investments As An NRI
SEBI has now permitted Foreign Portfolio Investors (FPIs) established in GIFT City to accept unlimited investments from Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs). This step enhances opportunities for the Indian diaspora to participate in Indian markets. NRIs can own up to 100% of a global fund set up in GIFT City, a special economic zone in Gujarat.
Note: NRIs are advised to seek professional advice from financial advisors before making any investment decisions who specialise in NRI investments and can provide valuable insights and guidance.
Herzindagi.com is Jagran New Media's gender and lifestyle vertical, catering to women of all age groups, helping them remain updated, on-trend and aware. To improve our performance and understand our readers' interests better, we have created this poll. This will take 2 minutes of your time, do help us out with this link.
For more such stories, stay tuned to HerZindagi.
Image credit: Freepik
Our aim is to provide accurate, safe and expert verified information through our articles and social media handles. The remedies, advice and tips mentioned here are for general information only. Please consult your expert before trying any kind of health, beauty, life hacks or astrology related tips. For any feedback or complaint, contact us at compliant_gro@jagrannewmedia.com.