•  NRI refers to Indian citizens who stay abroad for employment, business, and vacation.

•  NRI can invest in the following products.
  
  Investments in equities under PIS on BSE and NSE Derivatives trading on the NSE IPO Portfolio Management Services Investments in Mutual Funds Trading in International commodities
   A citizen of a foreign country (other than a citizen of Bangladesh or Pakistan) is a PIO if:

1. He/She at any time held an Indian Passport. OR

2. He/She or either of his parents or any of his/her grandparents was a citizen of India; OR

3.  He/She is a Spouse (not being a citizen of Bangladesh or Pakistan) of an Indian citizen (a) or (b) above.

•  An NRI should have a bank account (NRE/NRO or both) with designated bank, which is approved by RBI (Reserve Bank of India) for this purpose. He should apply for a general approval for investment in Indian Stock Market through his designated bank branch. He should open a Demat Account with Competent Finman Pvt. Ltd. to hold his shares and to execute his buy/sell orders on the stock exchange(s).

• Any NRI/PIO can open two types of savings accounts with any bank in India. They are NRE and NRO bank accounts.

•  A NRE bank account is an external saving bank account opened for Non resident Indians. This is why it is known as Non-Resident External account. Since it is an external account, any monies lying in NRE account can be taken outside the country or in other words, the monies lying in NRE account are fully repatriable. This money can be converted into any foreign currency at the behest of the account holder and can be remitted outside the country.

• A NRO bank account is an ordinary saving bank account opened for Non resident Indians. This is why it is known as Non-Resident Ordinary account. Since it is an ordinary account i.e. as good as a normal saving bank account, monies lying in NRO account cannot be taken outside the country or in other words, the monies lying in NRO account are not repatriable.

• Money can be freely transferred from NRE account to NRO account and vice versa.

•  RBI has advised banks to re-designate such accounts as resident accounts on return of the account holder to India.

•  As per section 6(5) of FEMA, NRI can continue to hold the securities, which he/she had purchased as a resident Indian, even after he/she has become a non-resident Indian, but has to transfer the shares to his NRO (Non Resident Ordinary) account.

•  NRIs are permitted to make direct investments in shares/ debentures of Indian companies/ units of mutual fund. They are also permitted to make portfolio investments i.e. purchase of share / debentures of Indian Companies through stock exchange. These facilities are granted both on repatriation and non-repatriation basis.

Yes. NRI can subscribe to IPO without any permission. The issuing company is required to take specific or general permission from GOI/RBI.

Portfolio Investment Scheme (PIS) is a scheme of the Reserve Bank of India (RBI) defined in Schedule 3 of Foreign Exchange Management Act 2000 under which the ‘Non Resident Indians (NRIs)’ and ‘Person of Indian Origin (PIOs)’ can purchase and sell shares and convertible debentures of Indian Companies on a recognized stock exchange in India by routing all such purchase/sale transactions through their account held with a Designated Bank Branch.

- PIS account is applicable only for NRIs and not for resident Indians.
- It is only for trading in Indian markets and not any other foreign markets.
- It is applicable only for equity trades and not MF investments.

* Any NRI or a PIO wanting to trade/make fresh investments in the Indian Equity Secondary Market needs and must have one PIS account with only one designated bank in India.
* NRI/PIO can open only one PIS account with any designated banks in a prescribed format for PIS account, upon which the bank can issue a PIS approval letter to the investor.
* Non-PIS is a normal savings bank account, which can be opened with any bank in India. Non-PIS is an account for which the transactions are not reported to RBI. This account takes care of selling all those shares, which are not allowed under PIS. Shares acquired under IPO or received as gift or bought as resident Indian can be sold under Non-PIS account.
* There are two types of NON PIS account NRE NON PIS account NRO NON PIS account.
* Following transactions are allowed under NON PIS account?

1. Sale of shares, which were, acquired other than PIS.
2.  Shares acquired through IPO’s.
3.  Gifts from relatives or otherwise.
4.   Shares bought as resident Indian.
5.  Fresh acquisition through IPO’s.
6.  Investment in Mutual Funds

• As per the regulations NRIs are allowed to invest up to a certain percentage of the total paid up capital of the company by directly subscribing to the equity/convertible debentures of the company either though a public offering made by the company or through private placements on one to one basis. Regulations provide for different ceilings on such investments based on the industry to which the company belongs and also the nature of investments (repatriation / non-repatriation basis).

•  Investments made by NRIs though subscription to Initial Public Offerings (IPO’s) or private placements are not covered by Portfolio Investment Scheme. Such investments are covered by RBI's regulations with regard to Foreign Direct Investments.

• NRIs do not need approvals from RBI for selling securities acquired through IPO’s/Private Placement. NRIs can sell such shares/debentures on the Exchange without any approval. However, while seeking the credit of sale proceeds to NRE/NRO

• account, the bank should be provided with the details regarding date of allotment and cost of acquisition to calculate the taxes, if any.

• Investment can be made on repatriation as well as non-repatriation basis. However, an NRI will have to open NRE account as well as NRO account with designated bank branch as the sale proceeds of non repatriation investment can only be credited to NRO account.

•  The repatriation of the sale proceeds, net of taxes, are allowed if the original purchase was made on repatriation basis and such investments were made out of funds from NRE/FCNR account or by means of remittance from abroad.

• Corporate benefits may be in the form of dividend, interest, rights, bonus, etc. Any corporate benefit resulting out of investment in securities on non-repatriation basis will not carry the right of repatriation. Similarly any corporate benefit resulting out of investment in securities on repatriation basis will carry the right of repatriation. This is subject to change depending on prevailing RBI regulations.

• Securities received against investments under ‘Foreign Direct Investment scheme (FDI)’, ‘Portfolio Investment scheme (PIS)’ and ‘Scheme for Investment’ on non – repatriation basis have to be credited into separate demat accounts. Investment under PIS could be on repatriation or non – repatriation basis. Investment under FDI scheme is on repatriation.