Deposits with companies
NRIs can keep deposits with public limited companies in India for a minimum period of three years, subject to certain ceilings/ conditions. Application for the purpose is required to be made by the company receiving the deposits through an authorized dealer.

Commercial paper (CP) issued by Indian companies
NRIs can invest in CPs issued by Indian companies but the amount invested could not be reaptriated outside India. These CPs will not be transferable.
Non-repatriable investments in shares/ debentures etc
 NRIs can make direct investments in proprietary/ partnership concerns in India as also in shares/ debentures of Indian companies. They can also make portfolio investments ie purchase of shares/ debentures of Indian companies through stock exchange(s) in India. These facilities are granted both on repatriation and non-repatriation basis.

Proprietary/ partnership concerns
NRIs can invest by way of capital contribution in any proprietary or partnership concern in India on non-repatriation basis provided the investee concern is not engaged in any agricultural/ plantation activity or real estate business. This facility is, however, not available to OCBs.

New issues of Indian companies
Indian companies accepts investments on non-repatriation basis, in shares/ convertible debentures by way of new/ rights/ bonus issue provided the investee company is not engaged in agricultural/ plantation activity or real estate business (excluding real estate development ie development of property and construction of house). However, the firms/ companies concerned are required to file declarations with Reserve Bank of India in form DIN giving particulars of the investments made, within 90 days from the date of the investment.

Mutual funds
NRI individuals can make investments in domestic public/ private sector mutual funds or money market mutual funds floated by commercial banks and public/ private sector financial institutions on non-repatriation basis.
OCBs can also make such investments but only in domestic public/ private sector mutual funds.

NRI bonds
NRIs are permitted to invest in NRI bonds on non-repatriation basis. At present these kinds of bonds are not on tap but they could be sold or purchased in secondary market. These bonds are issued in certain specified denominations and are designated in U.S. dollar. These bonds are fully exempted from gift-tax, wealth-tax and income tax. These bonds could be gifted and tax benefit continues to be available to the drone.

Government securities & national savings certificates
NRIs can invest their funds in government securities or units of UTI through authorized dealers. Units can also be purchased directly from UTI.
NRIs can make investments in National Savings Certificates subject to the terms and conditions applicable to the sale/ issue of such certificates. However, NRIs are not permitted to invest in bearer securities like Indira Vikas Patra/ Kisan Vikas Patra.
Government securities/ units can be freely transferred or sold, provided the transfers/ sales are arranged through an authorized dealer. Units can, however, be repurchased directly by UTI.

Fixed deposits
NRIs can place their funds in fixed deposits in Indian companies. Permission is granted by Reserve Bank of India on application by the depositor or the deposit accepting firm/ company, on non-repatriation basis, subject to certain ceilings/ conditions.

# Promoting/ controlling stakes in companies: Under the existing Industrial Policy, investment by foreign companies upto 50 % / 51 % / 74 % of the equity is allowed by Reserve Bank of India on repatriation basis in certain high priority industries. NRIs can take up the balance 50 % / 49 % / 26 % equity in such cases on repatriation basis.

Repatriation
Income/ Interest earned accruing during the financial year 94-95 and onwards on bank deposits and investments held by NRIs with non-repatriation benefits will be eligible for repatriation as under:

# Up to US$1000 or its equivalent in full and one-third of the balance income earned during the financial year 94-95;

# Up to US$1000 or its equivalent in full and two-third of the balance income earned during the financial year 95-96;

# The entire income earned during the financial year 96-97 and onwards.

Note: The investment/ principal amount of deposits made/ held on non-repatriation basis will, however, not be allowed to be repatriated abroad.

Procedure
NRIs should designate a branch of an authorized dealer through whom the remittance of income is to be made and make an application in form RCI to the designated branch giving details of incomes earned during the previous financial year along with a Chartered Accountant's Certificate. The designated branch will allow the remittance of net amount (ie after payment of tax) or credit it to NRE/ FCNR account of the applicant.

Transfer/ sale of shares/ debentures/ bonds held on non-repatriation basis residents
NRIs are permitted for transfer/ sale of debentures/shares/bonds by NRIs/ OCBs through stock exchanges if such transfers are made in favor of an Indian citizen or a person of Indian origin or a company incorporated in India. Sale proceeds of such transactions has to be credited to NRO account. NRIs are required to submit applications on form TS 1 to Reserve Bank of India for sale of shares/ debentures by private arrangements.