S.No.

Category of Investment

Permission required

Restrictions

1.

Investment in New Issues of Indian Cos. By NRIs/OCBs under 40% scheme.

No approval required to be taken by the NRI/OCB. The Co. needs to file Form ISD(R) with other relevant details to the concerned office of RBI within 30 days from the date of issue of shared/ debentures.

a) The issue of equity/preference shares and convertible debentures to NRIs/OCBs does not exceed 51% of the face value of each new issue of the company concerend.

b) The shares of the company are not listed on any stock exchange

c) The company is engaged in manufacturing activity not being an activity specified in Annexure III to the Statement of Industrial Policy,1991

2.

Investment in New Issues of Indian Cos. By NRIs/OCBs under 24% scheme.

No approval required to be taken by the NRI/OCB. The Co. needs to file Form ISD with other relevant details to the concerned office of RBI within 30 days from the date of issue of shares/ debentures.

The company should not be engaged in agricultural/plantation activities and real estate business Investment to be made by NRI/OCB upto 24% of the new issue of the concerned Indian company.

 3.

Investment in Priority Industries by NRI/OCBs under 100% scheme.

No approval required to be taken by the NRI/OCB. The Co. needs to file Form ISD(R) with other relevant details to the concerned office of RBI within 30 days from the date of issue of shares.

The industries covered under this provision are those in Anexure III to Ministry of Industry's Press note14 (1997 series) and Indian companies primarily engaged in export trading activities The scheme is open to new industries as well as for expansion of existing industries.

4.

Investment by NRIs/OCBs upto 100% in Housing and Real Estate Development

No approval required to be taken by the NRI/OCB. The Co. needs to file Form ISD(R) with other relevant details to the concerned office of RBI.

Repatriation of original investment will be permitted only after a lock in period of three years. From the date of issue of shares/CDs OCBs will be permitted to repatriate net profit (upto 16%) arising out of such investment after the lock in period of three years. 

5.

Investment by NRIs/OCBs upto 100% in Air Taxi Operations.

No approval required to be taken by the NRI/OCB. The Co. needs to file Form ISD(R) with other relevant details to the concerned office of RBI.

Guidelines issued by the the Director General of Civil Aviation for Air taxi Operations to be followed Repatriation of investment and /or remittance of dividend will be permitted any after expiry of five years of operation of the scheme and only out of accumulated net foreign exchange earnings. 

6.

Investment in Non convertible debentures of Indian Cos.by NRIs/ PIOs/OCBs.

No approval required to be taken by the NRI/OCB. The Co. needs to file all relevant details to the RBI office within 30 days from the date of issue of NCDs.

The percentage of such NCDs issued to NRIs/ OCBs to the total paid up value of each series of NCs issued should not exceed the ceiling applicable for issue of equity shares/CDs as prescribed by RBI from time to time under the respective schemes ie 24%, 51%,100% etc. The rate of interest on NCDsshould not exceed prime lending rate of SBI, plus 300 basis points Minimum period of redemption id three years Invested company is not engaged in agricultural or  plantation activities or real estate business, trading in TDRs or act as a chit fund or Nidhi Co.

7.

Investment in Sick Industrial units by NRIs/OCBs upto 100% of the equity capital of the company.

Applications for issue/transfer of equity shares to the non residents should be made by the concerend Indian Co. in Form RSU to the Central office of RBI with all relevant particulars and documents.

A comapny should be declared sick or should be a rehabilitation programme approved by the public finanacial institution/commercial bank/ consortium of banks or by the Board for Industrial and Financial Reconstruction.

8.

Investment by NRIs/OCBs/PIOs/ FIIs in schemes of Domestic Mutual Funds.

No permission required to be taken by the non resident investor.

The mutual fund should comply with the terms and conditions stipulated by the SEBI. Amount representing investment should be received by inward remittance or by debit to NRE/FCNR account of non resident investor or Special Non Resident Rupee account of the FII.

9.

Investment in bonds issues by Public Sector Undertakings by NRIs/OCBs.

No permission required to be taken by the non resident investor. Application for permission to be made by the concerned PSU to RBI in Form ISD(R).

The concerned PSU should obtain the necessary approval from the Govt. of India for raising funds through the issue of bonds.

10.

Investment in shares of Public Sector Enterprises by NRIs/OCBs.

No permission required to be taken by the non resident investor.

The holding of shares by a NRI or an OCB, at any time  does not exceed 1% of paid up capital of the concerend PSE. The purchase consideration/bid money is received by way of remittance from abroad through normal banking channels or by transfer of funds held in investor's NRE/FCNR A/Cs.

11.

Fixed deposits by NRIs/OCBs with public limited companies including Government undertakings with limited liability

No separate permission to be taken by the non resident investor. Application for permission to accept deposits from non residents to be made by the Indian company through its bankers in the concerned office of RBI.

The total amount of fixed deposit permitted to be accepted to be stipulated by RBI in individual cases.