New Delhi, September 02, 2005
PTI
Government today further liberalised FDI guidelines,
allowing all Non Resident Indian investment in Rupees
to be converted into repatriable equity
For this purpose, Government has modified Press Note
4 that gives detailed guidelines on NRI investments,
an official statement said today.
Earlier, under Press Note 4 of 2001 investments by
NRIs made in foreign exchange on non-repatriable basis
was allowed to be made fully repatriable whereas investment
made in Indian rupees though Rupee account continued
to remain non-repatriable.
At present, proposals for conversion of NRI investment
in Rupees into repatriable equity have to be approved
by the Foreign Investment Promotion board for approval.
With Department of Industrial Policy and Promotion
issuing a modified Press Note 4(2005), all proposals
would now qualify for conversion of non-repatriable
equity into repatriable equity under the automatic
route.
However, this would be subject to two conditions,
firstly that the original investment by NRI was in
foreign exchange under the FDI scheme and secondly
that the sector in which investment is proposed to
be converted into repatriable equity is on the automatic
route for FDI.
