Over the past few months, the interest in the Indian stock market, especially among NRI's, has picked up. After all, rupee has depreciated against all the major currencies in 2013. To attract foreign currency, RBI has deregulated interest rates on NRI deposits. In response to which, banks have raised NRI deposit rates. So, if you're an NRI investor looking to invest in Indian stocks , having no clue about where to start, read on.
For the lakhs of Indians working abroad and their families back home in India, these are indeed good times. The sharp depreciation in the local currency means the money they send home fetches more rupees on conversion.
In fact, a World Bank report says that India's migrant workers are expected to rush back more dollars home this year to take advantage of the weak rupee. At an estimated $71 billion (Rs 4,40,200crore), India will be the top recipient of official remittances this year. This is besides the huge sums of money sent back home through informal channels.
The Finance Ministry today notified thatforeign nationals are buying immovableproperty illegally in some parts of the country. Many organizations and social groups have also made representations to the Central Government expressing their serious concerns in this regard.
According to regulations, Non Resident Indians (NRIs) can invest in shares & debentures of Indian Companies on repatriation basis as per general permission granted by RBI subject to certain conditions.
According to regulations, Non-Resident Indians (NRIs) are freely permitted to invest their funds in Government securities through authorised dealers.
NRIs are also allowed to invest in National Savings Certificates issued by Post Offices in India. Investments in National Savings Certificates can be made by NRIs subject to the terms and conditions applicable to the sale/issue of such certificates. However, NRIs are not permitted to invest in bearer securities like Indira Vikas Patra/Kisan Vikas Patra.
If the above securities were purchased out of funds remitted from abroad or out of NRE/FCNR accounts, sale/maturity proceeds can be repatriated. Sale/maturity proceeds of securities purchased out of funds in NRO accounts can only be credited to NRO accounts and cannot be remitted abroad.
According to regulations, Non Resident Indians (NRIs) can make portfolio investments in shares and debentures quoted on the Stock Exchanges in India with full benefits of repatriation of capital and income thereon subject to certain conditions.
According to regulations, Non Resident Indians (NRIs) are allowed to repatriate abroad income by way of interest, dividends, and rentals.
There is no ceiling on the value of such remittances and the amounts are remitted out of the NRO Account….
According to regulations, Non-Resident Indians (NRIs) can on repatriation basis, invest in government securities including Government dated securities (other than bearer securities), Treasury bills and units of domestic Mutual funds, Bonds issued by PSUs and shares in Public Sector Enterprises disinvestments by Government of India.
A 2014 study by Jones Lang LaSalle India shows Bangalore is the most-favored city for real estate investment by NRIs. Information technology has long been the biggest contributing factor towards Bangalore's real estate boom.
The most popular submarkets for real estate investment are East and North Bangalore. East Bangalore including Whitefield, Old Madras Road and Electronic City is popular due to its proximity to IT/ITES companies and presence of social infrastructure like schools, hospitals, shopping and entertainment. While East Bangalore remains an excellent investment choice, it is a more mature submarket.
North Bangalore towards the airport could offer greater appreciation in property values since the area is seeing considerable infrastructure investment from the government to provide better transportation links to the city in addition to development of SEZ and IT parks. There is also heavy demand for affordable housing in the outskirts of West and South Bangalore.
According to regulations, Non-Resident Indians (NRIs) can invest in Government Securities and Treasury Bills through a Primary Dealer. The same will be issued to them in a dematerialized form, and NRIs have to establish to the primary dealer that the source of funds is external in order to allow NRIs to put the proceeds on maturity into an NRE account.
According to regulations, all forms of current income arising out of investments in India including income by way of interest, dividends, rentals, etc. can be repatriated by Non-Resident Indians (NRIs).