New Delhi: With the Department of Industrial Policy and Promotion issuing a modified press note 4 (2005), all NRI proposals will now qualify for conversion of non-repatriable equity into repatriable equity under the automatic route. This is subject to the original investment being in foreign exchange and the sector included in the automatic route.
Now all proposals by NRIs for converting non-repatriable equity into repatriable equity will come under the automatic approval route. Until now, proposals for conversion of NRI investment into repatriable equity had to be sent to the Foreign Investment Promotion Board for approval. Earlier, under the press note 4 of 2001, investments by NRIs made in foreign exchange on a non-repatriable basis were allowed to be made fully repatriable, whereas investment made in the Indian currency, though rupee account, continued to be non-repatriable.
According to an official statement, the government has now modified press note 4 of 2001, which gives detailed guidelines on NRI investments.