What sort of investments are allowed for NRIs in India? Shweta Rajani answers
«An NRI can invest in the Indian stock market, but there are certain restrictions on which. So, under the RBI's PIS scheme, an NRI can invest in the Indian stocks but there is a restricted list of stocks in which they can invest into, but that is pretty much a broad list and it covers good quality stocks that they can invest into,» says Shweta Rajani, Anand Rathi Wealth.Let us start with the basics. In financial terms who is an NRI and where NRI can make investments? What sort of investments are allowed for NRIs in India? So, starting with who is an NRI.
According to the Income Tax Act, if you have spent less than 182 days in India, then you are classified as an NRI and if you qualify as an NRI, a basic thing that is needed to invest in India is you need to have a bank account and you need to have some basic documents in place. You can have an NRO account, that is a non-resident ordinary account that you can invest in where your income generated in India can also be invested.
You have an NRE account, so you can open an NRE account or an FCNR account where you can invest your foreign currency. So, you need to have one of these accounts in place.
Second, you need to have your PAN card, address proof, a bank account statement and your passport copy in place to get your KYC and other details done. If you have these two things in place, then you can invest in India.But what are the various options that are available for NRIs to invest in when it comes to the equities? Can they invest in all the stocks that are available or they have to do it with a delay of one day because what I understand, what my experience is that a couple of my friends who are living abroad they do mention that there is some barrier in terms of
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