Ans.
1. Investment in securities:
a) On repatriation basis: Yes, NRI can also invest in following securities without limit as under:
· Government dated securities (other than bearer securities) or treasury bills or Units of domestic mutual funds or Exchange-Traded Funds (ETFs), which invest less than or equal to 50% in equity.
· Bonds issued by a public sector undertaking (PSU) in India.
· Shares in Public Sector Enterprises being disinvested by the Central Government.
· Bonds issued by Infrastructure Debt Funds
· Listed Non-convertible/ redeemable preference shares or debentures
· Debt instruments issued by banks, eligible for inclusion in regulatory capital.
b) On non-repatriation basis: Yes, NRI can also invest in following securities without limit as under:
· Government dated securities (other than bearer securities) or treasury bills or Units of domestic mutual funds or Exchange-Traded Funds (ETFs) which invests less than or equal to 50% in equity, or National Plan/ Savings Certificates.
· Listed Non-convertible/ redeemable preference shares or debentures
· Chit funds authorized by the Registrar of Chits authorised by the Registrar of Chits or an officer authorized by the State Government in this behalf.
2. Subscription to National Pension System:
Yes, NRI can subscribe to National Pension System, governed and administered by Pension Fund Regulatory and Development Authority (PFRDA), provided such person is eligible to invest as per provisions of PFRDA Act. The annuity/accumulated savings would be repatriable
Subscription to National Pension System shall be paid as inward remittance from abroad through banking channels or out of funds held in NRE /FCNR(B)/NRO a/c. Accordingly, the sale proceeds (net of taxes) may be remitted outside India or may be credited to NRE /FCNR(B)/NRO a/c of the investor, as per investor’s choice.