Non Resident Indians NRIs can invest in India as per a regulation of Foreign Exchange Management Tra...........

Economic Affairs Others

Non-Resident Indians (NRIs) can invest in India as per a regulation of Foreign Exchange Management (Transfer or issue of Security by a person resident outside India) Regulations, 2000. However, as per the regulation

NRIs cannot invest in shares or debentures.
NRIs may contribute foreign capital by way of capital contribution.

Which of the above is/are correct?

1 only

2 only

Both 1 and 2

None

छोटे Courses बड़े Results

Master Others

Prepare through Micro-courses

Try Now

Explanation:

Statement 1: As per Regulations, NRIs may invest in shares or partly paid up shares of an Indian company under Foreign Direct Investment (FDI) Scheme subject to certain terms and conditions.Statement 2: NRIs may even acquire securities or units on a Stock Exchange in India on repatriation basis (i.e. they can take the investment back abroad) under the Portfolio Investment Scheme. NRIs even hold FCNR deposits in India banks that earn them interest. We will cover FCNR in details in coming tests.