Portfolio Investment in Shares and Debts of Indian Companies and in Domestic Mutual Funds

General Conditions for Purchase with Repatriation or Non-Repatriation Rights:

• NRIs and OCBCs will be permitted to make portfolio investments in shares or debentures (convertible and non-convertible) of Indian companies, with or without repatriation benefits, provided the purchase is made through a stock exchange and also through the designated branch of an authorized dealer. NRIs and OCBCs are required to designate only one branch authorized by the Reserve Bank for this purpose.
• Investment in equity shares and convertible debts will be permitted subject to an overall ceiling of (A) 10 percent of the total paid-up equity capital of the company concerned and (B) 10 percent of the total paid-up value of each series of convertible debts issued by the company concerned for all NRIs and OCBCs taken together, both on a repatriation and non-repatriation basis.
• The purchase of shares and debts under the scheme is required to be made at the prevailing market price.
• NRIs and OCBs intending to invest on a non-repatriation basis should submit their applications in Form NRI or NRC, respectively, through a designated branch of an authorized dealer, to the Reserve Bank (Central Office). The Reserve Bank Will Grant General Permission To The Concerned Authorized Dealer To Purchase Shares/Debentures Of Indian Companies, Securities (Other Than Bearer Securities) Of The Central Or Any State Government, And Treasury Bills On Behalf Of The NRI/OCB Subject To The Condition That The Payment For Such Investment Is Received Through Inward Remittance Or From The Investor's NRE/FCNR/NRO/NRSR Account.

The general permission granted by the Reserve Bank would be initially valid for a period of five years. Authorized dealers may themselves renew the permission granted by the Reserve Bank to individual NRIs as well as OCBs for a period of five years at a time.

NRIs and OCBs intending to invest with repatriation benefits should submit their applications through a designated branch of an authorized dealer in Form RPI or RPC, respectively .

The Reserve Bank will grant general permission to the designated branch for the purchase of shares or debentures of Indian companies, securities (other than bearer securities) of the Central or any State Government, and Treasury bills, subject to the conditions that the payment is received through an inward remittance in foreign exchange or by debit to the investor's NRE or FCNR account.

Investment made by any single NRI/OCB investor in equity/preference shares and convertible debentures of any listed Indian company should not exceed 5% of its total paid-up equity or preference capital or 5% of the total paid-up value of each series of convertible debentures issued by it, and NRIs/OCBs take delivery of the shares/convertible debentures purchased and give delivery of the shares/convertible debentures sold under the Scheme.

The general permission granted by the Reserve Bank will be valid initially for a period of five years. Authorized dealers may themselves renew the permission granted by the Reserve Bank to individual NRIs as well as OCBs for a further period of five years at a time. Authorized dealers may note to obtain the latest OAC/OAC 1 certificate from the OCB concerned before renewing the permission.