NRG's can make the following investments in India through foreign currency remittances or out of NRE / FCNRA/ cs with the benefits of repatriation, not only of the initial amount of investment, but also of the interest and dividend income, as well as the appreciation on initial investment realized by way of capital gains:

Non Resident External (NRE) Account maintained in Indian Rupees in the form of Savings A/c or Term Deposits.

Foreign Currency Non Resident (FCNR) Account maintained in specified foreign currencies being Sterling Pound, U.S.Dollar, Deutsche Mark and Japanese Yen in the form of Term Deposits.

Upon return of the to India on settlement, the balance of NRE/FCNRA/cs referred above can be transferred to the Resident Foreign Currency (RFC) Account, which can be maintained either as a savings or Term Deposit Account in U.S.Dollar, Sterling Pound or Deutsche Mark. The benefit of repatriation can be availed of even in respect of the balance in RFC A/c.

Units of the Unit Trust of India, Central and State Government Securities and National Savings Certificates.

Direct Investment upto 51% in the new issue of equity/preference shares or convertible debentures of any new or existing public or private limited company raising capital for a new or existing industrial/manufacturing project
or for expansion or diversification of the same. Investment under the 51% scheme can also be made in a company engaged in the activity of running a hospital, 3 to 5 star hotel, shipping, development of computer software or oil exploration.

Direct investment upto 100% in equity shares or convertible debentures of a private or a public limited company engaged in or proposing to engaged in high priority industries.

Direct investment upto 100% in equity shares or convertible debentures of a private or a public limited company primarily engaged in export trading activities, 100% export oriented unit or a unit in export processing zone.

Direct investment upto 100% in sick industrial units on private placement basis. However, repatriation of capital in this case shall be permitted only after 5 years.

Direct investment upto 100% in equity shares or convertible debentures of a private or a public limited company primarily engaged in housing, real estate development (including construction of roads and bridges), manufacturing of building materials and financing of housing development. However, repatriation of capital in this case shall be permitted only after 3 years.

Direct investment upto 100% in Air Taxi Operations. However, repatriation in this case shall be permitted only after 5 years and only out of accumulated foreign exchange earnings.

Direct Investment in new issues of non-convertible debentures, without any limit. Deposits with Public Limited Companies in India, accepted in conformity with the prevailing rules for acceptance of deposits and such deposits being kept for a period of 3 years.

Portfolio Investment in equity/preference shares or convertible debentures through stock exchanges in India. Purchase of shares or convertible debentures, in this case, by a single investor should not exceed 1% of the total paid-up capital or paid-up value of convertible debentures of that series issued by the company. There is also an overall ceiling of 24% investment by all Non-Residents put together. The lock-in period of one year for availing the repatriation
benefit on transfer under this category has been done away
with from September, 1994 and accordingly shares/debentures can be now transferred at any time after purchase and the sale proceeds can be repatriated after payment of income tax on the amount of taxable capital gains. It must be borne in mind that if the shares/debentures are held for more than one year before transfer, the resultant capital gains would be treated long-term and the applicable tax rate would be the concessional rate of 10%. In case of sale of shares / debentures held for less than one year, the resultant capital gains would be short-term, income tax would be leviable thereon at the normal rates, which would extend up to a maximum of 30% as presently applicable.

Portfolio investment in existing non-convertible debentures or master shares of U.T.I. through stock exchanges in India, without any limit.