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RBI to allow investment by NRIs
December 05, 2003 20:06 IST
The Reserve Bank of India has allowed investments by NRIs or Persons of Indian Origin in the capital of an entity or a proprietary concern on a non-repatriation basis, subject to certain norms.
The amount invested would not be eligible for repatriation outside India provided it has been made by inward remittances out of Non-Resident External or Foreign Currency Non-Resident account or Non-Resident Ordinary account, the central bank said in a notification to authorised dealers.
The RBI pointed out that investments was subject to the firm or proprietary concern is not engaged in any agricultural plantation or real estate business, immovable property with a view to earning profit or earning income.
Investment in sole proprietorship concern/ partnership firm with repatriation benefits can be made by NRIs/PIOs only with prior approval of Secretariat for Industrial Assistance, Government of India/RBI, the circular said.
RBI said persons other than NRIs/PIOs can invest provided they get the approval of RBI and fulfilling other terms and conditions.
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