An NRI or OCI can invest, on non-repatriation basis, in following:
1) the capital instruments (i.e., equity shares, compulsorily convertible debentures, compulsorily convertible preference shares and share warrants) (“Capital Instruments”) of an Indian company, without any limit, either on the stock exchange or outside it;
2) units issued by an investment vehicle (i.e. AIF, REIT or InvIT), without any limit, either on the stock exchange or outside it;
3) the capital of a limited liability partnership, without any limit;
4) convertible notes issued by a start-up company.
In addition to the above, an NRI or OCI is also allowed to invest, by way of contribution to the capital of a firm or a proprietary concern in India.
Further, NRIs or OCIs are now also allowed to make above-said investments, through the companies, trusts or partnership firms that are incorporated outside India and are owned and controlled by NRIs or OCIs.
