RBI eases portfolio investment scheme for NRIS

In order to attract inflow of foreign currency, the Reserve Bank simplified rules governing investments by non-resident Indians (NRIs) portfolio investments like equities and debt.

Under the Porfolio Investment Schemes (PIS) for NRIs, banks were given unique code for each branches, making it cumbersome for them to administer the scheme. RBI has now dispensed with the unique code for branches and said banks shall be "free to permit its branches to administer the PIS scheme for NRI. The designated branch of the bank will grant one time permission to the NRI applicant for purchase and sale of shares or convertible debentures of an Indian company, RBI said in a notification. "Designated branch will open a separate sub account of NRE/NRO account (opened and maintained by an NRI in terms of the Foreign Exchange Management (Deposit) Regulations, 2000) for the exclusive purpose of routing the transactions under PIS on behalf of an NRI," it said. Shares or debentures brought will be registered in the name of the NRI.