Is remittance of interest/dividend to NRI investors freely allowed under the 24%/51% Scheme?
Yes. There is no ceiling or restriction on the amount of remittable dividend. Remittance of interest/dividend to NRI investors will be allowed by authorised dealers under the powers delegated to them.
What are the specified industries under the 100% Scheme?
Under 100% Scheme, NRIs are permitted to invest in high priority industries listed in Annexure III to the Statement on Industrial Policy dated 24th July 1991 of the Government of India up to 100% of the new issue.
Is dividend/interest earned in respect of investments made under the 100% Scheme freely remittable to the NRIs abroad?
Dividend/interest can be remitted freely except in the case of consumer goods industries where the outflow on account of dividend is required to be balanced by export earnings of the company either in the year of declaration of dividend or in the years prior to the declaration of dividend. This requirement is enforced for a period of seven years from the commencement of commercial production.
How does an NRI obtain permission of Reserve Bank for investment under the 24% or 51% or 100% Scheme?
The NRI investor need not apply to Reserve Bank. Indian companies have been permitted to issue shares/convertible debentures to NRIs/OCBs. They have to file declaration in Form ISD together with the required documents to Reserve Bank within 30 days from the date of issue.
Besides the 24%, 51% and 100% Schemes is there any other scheme for investment by NRIs in the equity of Indian companies?
Yes. NRIs are permitted to undertake revival of sick industrial units by making bulk investment in them to the extent of 100 per cent either by way of purchase of existing equity shares or in the form of subscription to new equity issues.
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