SAMIAH


	NRI Zone - Intro

'Know Your Rights'

GENERAL INFORMATION

Non-resident Indian (NRI)/Person of Indian Origin (PIO)/Overseas Corporate Bodies (OCB)

Who is Non-resident Indian (NRI)?

"Non-resident Indian (NRI) means a person resident outside India who is a citizen of India or is a person of Indian origin".

Who is a person of Indian Origin?

For the purposes of availing of the facilities of opening and maintenance of bank accounts and investments in shares/securities in India:

Person of Indian origin means a citizen of any country other than Pakistan or Bangladesh, if
   - He at any time, held an Indian passport; or
   - He or either of his parents for any of his grand parents was a citizen of India by virtue of the constitution of India or Citizenship Act, 1955 (57 of 1995); or
the person is a spouse of an Indian citizen or a person referred to in clause (a) or (b)

For investments in immovable properties;
Person of Indian origin means an individual(not being a citizen of Pakistan or Bangladesh or Afghanistan or Bhutan or Sri Lanka or Nepal or China or Iran)
  - Who at any time, held an Indian passport or
  -  Who or either of whose father or whose grandfather was a citizen of India by virtue of the Construction of India or the Citizenship Act, 1955 (57 of 1955)

What is an OCB?

Overseas Corporate Bodies (OCBs) are bodies predominantly owned by individuals of Indian nationality or origin resident outside India and include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of at least 60% by individuals of Indian nationality or origin resident outside India as also overseas trusts in which at least 60% of the beneficial interest is irrevocably held by such persons. Such ownership interest should be actually held by them and not in the capacity as nominees. The various facilities granted to NRIs are also available with certain exceptions to OCBs so long as the ownership/beneficial interest held in them by NRIs continues to be at least 60%.

What are the various facilities available to NRIs/OCBs?

NRIs/OCHHs are granted the following facilities:
Maintenance of bank accounts in India.
Investment in securities/shares of, and deposits with Indian firms/ companies.
Investments in immovable properties in India.

GENERAL PERMISSIONS

Reserve Bank has granted general permission to NRIs/PIOs, for undertaking direct investments in Indian companies, under the Automatic Route purchase of shares under Portfolio Investment Scheme, investment in companies and proprietorship/partnership concerns on non-repatriation basis and for remittances of current income. NRIs/PIOs do not have to seek specific permission for approved activities under these schemes.

The Reserve Bank of India has now further simplified financial transactions by NRIs/PIOs by granting general permissions to :

  - To resident individuals, partnership/proprietorship concerns to avail of interest bearing rupee loans from NRIs/PIOs out of funds remitted by them from abroad or out of funds held in their bank accounts in India, on non-repatriation basis, subject to certain conditions one of them being that the rate of interest on such loans should not exceed Bank Rate plus two percentage points.

  - NRIs/PIOs to transfer by way of gift shares held by them in Indian companies and to transfer by way of gift immovable property held by them in India subject to compliance with other applicable rules/regulations including the provisions of Foreign Contribution Regulations Act, 1976 by the charitable trust/organization concerned.

  - All domestic public/private sector mutual funds for issue of Units to NRIs/PIOs/OCBs on bot repatriation as well as non-repatriation basis.

  - NRIs/PIOs/OCBs to place deposits wit Indian firms, on non-repatriation basis and wit Indian companies including Non-banking financial companies on bot repatriation and non-repatriation basis.

  - NRIs/PIOs/OCBs for sale of shares acquired under direct investment Schemes on stock exchanges in India. NRIs/PIOs/OCBs have been granted General Permission to invest in Government Securities and Treasury Bills.

  - NRIs/OCBs/PIOs do not have to seek specific permission for approved activities covered under 'General permission' schemes. The activities relating to NRIs/OCBs/PIOs not covered under those schemes either require declaration to RBI or permission from RBI. The activities requiring Declaration/Permission along with corresponding forms are as under;

TS 1	Transfer of Shares/Debentures by Non-residents to Residents.
FNC 1	Permission to establish a branch office in India by an Overseas Company establishing a Representative Office by Overseas Company for Liaison Activities to open a Project/Site Office in India.
IPI	Company/Individual (declaration) acquiring property

ABBREVIATIONS
AAR	Authority Advance Rulings
EHTPs	Electronic Hardware Technology Parks
EOU	Export Oriented Unit
EPZ	Export Promotion Zone
FCNR (B) Account	Foreign Currency (Non-resident) Accounts (Banks)
FEMA	Foreign Exchange Management Act
FIPB	Foreign Investment Promotion Board
NRE Account	Non-resident (External) Rupee Accounts
NRIs	Non-resident Indians
NRNR Account	Non-resident (Non-reportable) Rupee Deposit Accounts
NRO Account	Ordinary Non-resident Rupee Accounts
OCBs	Overseas Corporate Bodies
PI	Portfolio Investments
PIO	Person of Indian Origin
SIA	Secretariat for Industrial Assistance
SSI	Small Scale Sector
STPs	Software Technology Parks
TCC	Tax Clearance Certificate

CONTACT ADDRESSES

Joint Secretary
Secretariat for Industrial Assistance Department of Industrial Policy & Promotion Ministry of Commerce
& Industry, Government of India, Udyog Bhavan,
New Delhi - 110 001
Tel: +91-11-3011983
Fax: +91-11-3011034
Email: jsindmss@ub.nic.in
Website: dipp.nic.in

Securities and Exchange Board of India
Mittal Court, B Wing
224 Nariman Point,
Mumbai
Tel: +91-22-204 5623
Fax: +91-22-202 1093
Website http://www.sebi.gov.in

Indian Investment Centre
Office of the Chief Commissioner
(Investments & NRIs)
Department of Economic Affairs,
Ministry of Finance, Jeevan Vihar Building,
Sansad Marg,
New Delhi - 110 001
INDIA
Tel: +91-11-3732035, 91-11-3360938
Fax: +91-11-3732182, 91-11-3733712
Website: www.nic.in/iic
E-mail:iic@giasdl01.vsnl.net.in

Reserve Bank of India
The Chief General Manager-In-Charge
Exchange Control Department
Central Office Building
Shahid Bhagat Singh Road
Mumbai - 400 123
Tel: +91-22-266 3596
Fax: +91-22-266 5330
Website: http://www.rbi.org.in

The Commissioner of Income-tax
Authority for Advance Rulings
5th Floor, NDMC Building
Yashwant Place, Satya Marg, Chanakyapuri
New Delhi - 110 021
INDIA
Tel: +91-11-611 7792,
+91-11-611 7802,
+91-11-611 7935
Fax: +91-11-611 3407
E-mail: avipra@del2.vsnl.net.in