Response to this Question

    'A' can freely invest in the shares (equity and preference) and convertible debentures of listed Indian companies on repatriation (i.e. from NRE account/ remittance from abroad) and non-repatriation basis (i.e. from NRO account/ NRE account/ remittance from abroad) subject to the following conditions:

    One bank branch to be designated by the investor and all transactions to be routed through that branch.
    Transactions to be carried out through a registered broker on a recognised stock exchange. Online trading has made it easy for NRIs to transact on their own from anywhere in the world.
    All transactions must be delivery based i.e. speculative transactions are not allowed.
    Ceiling on investment in one company by one NRI and all NRIs taken together at 5% and 10% respectively
    Investment can be made in almost all sectors except companies engaged in print media, chit fund/ nidhi, agriculture, plantation, real estate (other than real estate development) and trading of Transferable Development Rights (TDRs).
    See Investment opportunities for more on investment in stock market.

Date : 10-Nov-2019 

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