What is the procedure for obtaining Reserve Bank permission in this regard?
Application for the purpose should be made by the concerned Indian company to the Central Office of Reserve Bank in Mumbai [in Form ISD(R)].
Will repatriation of the original investment and/or dividend income be freely permitted?
Yes. Repatriation of original investment will be permitted after a lock-in period of three years from the date of issue of the equity shares/convertible debentures. In addition, OCBs will be permitted to repatriate net profit (upto 16 per cent) arising from the sale of such investment after the lock-in-period of three years. (This facility is, however, not available to individual NRIs.) Annual dividend/interest on equity shares/debentures can, however, be freely remitted subject to payment of tax.
Are investments in Air Taxi operations permitted to be made by NRIs/OCBs?
Yes. Investments upto 100% equity participation for carrying on Air Taxi operations are permitted in terms of the guidelines issued by the Director General of Civil Aviation for Air Taxi operations. Reserve Bank has granted general permission to Indian companies engaged in Air-Taxi operations to issue shares subject to certain conditions. The concerned company should file a declaration in form ISD(R) within 30 days from date of issue to Reserve Bank.
Can NRIs invest in non-convertible debentures on repatriation basis?
Yes. Application for necessary permission should be made to Reserve Bank (Central Office) by the concerned Indian company in form ISD(R).
What is the procedure to be followed for making investment in the schemes of domestic Mutual Funds with repatriation benefits?
Reserve Bank has granted general permission to domestic mutual funds to issue units/similar instruments to NRIs/OCBs on both repatriation basis and non-repatriation basis.
Can NRIs invest in 100% Export Oriented Units on repatriation basis?
Yes. NRIs will be permitted to invest up to 100% in 100% Export Oriented Units subject to obtaining approval from the Government of India, Ministry of Industries (SIA) for setting up the EOU.
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