Para 3.2
- Document type
- Policy
- Dated
- Category
- Policy
3. INVESTMENT BY NON RESIDENT INDIANS OVERSEAS CORPORATE BODIES
- 3.2
- The NRIs and OCBs are allowed to invest in housing and real estate development sector, in which foreign direct investment is not permitted. They are allowed to hold even100 per cent equity in civil aviation sector in which otherwise foreign equity only up to 40 per cent is permitted. Similarly for the banking sector, NRIs/ OCBs can hold 40 per cent equity inclusive of foreign direct investment. Equity participation by foreign banking companies, foreign financial companies, and multilateral institutions as co-promoter and/or technical collaborator is also permitted up to 20 per cent. Multilateral institutions have a special dispensation to invest beyond 20 per cent to the extent of shortfall in NRI contributions, subject to the overall limit of 40 per cent. Investment made by the NRIs and OCBs are fully repatriable except in the case of real estate, which has a 3 year lock-in period on original investment and 16 per cent cap on dividend repatriation.