1.Who is a Non-Resident Indian (NRI)?

An Indian citizen or a foreign citizen of Indian origin who stays abroad for employment/carrying out business or vocation for 182 days or more or under circumstances indicating an intention for an uncertain duration of stay abroad is a Non-Resident Indian (NRI). Those who stay abroad on business visits, for medical treatment, study or such other purposes, which do not indicate an intention to stay there for an indefinite period are not considered as NRIs.

2. Who is a Person of Indian Origin (PIO)?

A Person of Indian Origin (PIO) means a citizen of any country (other than Bangladesh or Pakistan), if :
(a) He/She at any time has held an Indian passport or
(b) He/She or either of his/her parents or grand parents was a citizen of India by virtue of the constitution of India or Citizenship Act, 1955 (57 of 1995) or
(c) He/She is a spouse of an Indian citizen or of a person referred to in (a) or (b) above.

3. What is an Overseas Corporate Body (OCB)?

An OCB is a company, partnership firm, society or other corporate body owned directly or indirectly to the extent of at least 60% by one or more NRIs and includes an overseas trust in which not less than 60% beneficial interest is held directly or indirectly by NRIs.

4. Who is a Foreign Institutional Investor (FII)?

FII means an institution established or incorporated outside India, which proposes to make investments in Indian securities and is registered with SEBI.

5. Can an NRI maintain a bank account in India?

Yes. NRIs can maintain accounts in rupees as well as in foreign currency. However, accounts in foreign currencies can be maintained with authorized dealers/ banks only.

6. What are the different types of rupee accounts that are permitted and can be maintained by NRIs?

The three types of rupee accounts permitted, that can be maintained by NRIs are as follows :
a) NRE : Non-Resident (External) Rupee Account
b) NRO : Non-Resident (Ordinary) Rupee Account
c) FCNR – B : Foreign Currency (Non –Resident) Accounts (Banks)
Note : With effect from 01/04/2002, both NRSR and NRNR deposit schemes have been discontiuned.

7. What are NRE and NRO accounts?

Non-Resident (External) Rupee (NRE) account is a rupee account from which funds are freely repatriable. It can be opened with either funds remitted from abroad or local funds maintained in NRE/ FCNR accounts, which can be remitted abroad. The deposits can be used for all legally valid purposes. The balance in the account is freely repatriable. Interest credited to the NRE accounts is exempt from tax in the hands of the NRI.

Non-Resident Ordinary Rupee (NRO) account is a rupee account and can be opened with funds either remitted from abroad or generated in India. The amounts in such an account are generally non-repatriable. However, funds in NRO accounts can be remitted abroad subject to/as per various directives in force at the time of repatriation. More details can be found on the Reserve Bank of India (RBI) website www.rbi.org.in

8. What is the distinction among NRE and NRO Accounts?

Balances held in NRE accounts can be repatriated abroad freely, whereas funds in NRO accounts cannot be remitted abroad but have to be used only for local payments in rupees. Funds due to the non-resident accountholder which do not qualify, under the Exchange Control regulations, for remittance outside India are required to be credited to NRO accounts.
Snapshot:

Type of Account	Currency	Repatriable / Non Repatriable
NRE - Non Resident External	INR	Freely Repatriable
NRO - Non Resident Ordinary	INR	Non Repatriable, Repatriable subject to RBI conditions
FCNR - Foreign Currency Non Resident	USD, GBP, Yen, Euro, DMK	Repatriable

9. Can an NRI, OCB, & FIIs invest in mutual funds in India?

While NRIs & FIIs can invest in mutual funds in India, OCBs cannot invest in mutual funds in India.
The following summary outlines the various provisions related to investments by Non-Resident Indians ('NRIs'), Persons of Indian Origin ('PIOs') and Foreign Institutional Investors ('FIIs') in the Schemes of the Mutual Fund and is based on the relevant provisions of the Income-tax Act, 1961 ('the Act'), regulations issued under the Foreign Exchange Management Act, 1999 and the Wealth-tax Act, 1957 (collectively called 'the relevant provisions').
Purchase Applications. NRIs can invest in Sundaram Mutual funds on a Repatriable/Non-Repatriable basis as per the provisions of Schedule 5 of the Foreign Exchange Management (Transfer or issue of Security by a Person Resident Outside India) Regulations, 2000 ('the Regulations') as explained below. A Common Application Form duly completed together with cheques or bank drafts should be submitted at SBNPFS Investor Service Centres or the branch offices of Sundaram Asset Management. All cheques/demand drafts accompanying the application form must be made in favour of the scheme names. For e.g to invest in Sundaram Select Focus the cheque should be drawn in favour of the scheme i.e. “------" and crossed "A/c payee" only and should be made payable at a city where the application is accepted by any of the branch offices of Sundaram Asset Management or SBNPFS Investor Service Centres.

Repatriable Basis
To invest on a repatriable basis, you must have an NRE Bank Account in India. The Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on repatriation basis, subject to the following conditions :
The amount representing investment should be received by inward remittance through normal banking channels, or by debit to an NRE account of the non-resident investor.
The net amount representing the dividend / interest and maturity proceeds of units may be remitted through normal banking channels or credited to NRE account of the investor, as desired by him subject to payment of applicable tax.

Non-Repatriable Basis
The Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on non-repatriation basis, subject to the following conditions :
Funds for investment should be provided by debit to NRO account of the NRI/ FII investor. Alternatively, funds may be invested by inward remittance or by debit to NRE Account.
No permission of Reserve Bank either by the Mutual Fund or the NRI investor is necessary.
FII Investors: FIIs may pay for their purchases with funds held in a Foreign Currency account or Non-resident Rupee account maintained in a designated branch of an authorised dealer [Clause 3(1) of the Regulations]. Payments may be made by cheques payable at a city where the application is accepted by any of the branch offices of Sundaram Asset Management or SBNPFS Investor Service Centres.
Applications from FIIs should be accompanied by appropriate documentation supporting the status of the investor and should be sent to the AMC/ISC , so as to reach them not later than 7 days after the date of the subscription.
Similarly, in case of an application under a Power of Attorney or by an FII, the original Power of Attorney or the relevant resolution/authority to make the application (or a duly notarised certified true copy thereof), along with a certified copy of the Memorandum and Articles of Association and/or bye laws and Certificate of Registration should be submitted to the SBNPFS ISC within 7 days from the date of the application. The officials should sign the application under their official designation.
The NRIs/PIOs/FIIs may also be required to furnish other documents needed to process their investments.

10. Does an NRI, PIO, FII require any approval from the RBI to invest in mutual fund schemes?

No special approval is required. NRIs/FIIs have been granted a general permission by RBI [Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000] for investing in/redeeming units of the schemes subject to conditions set out in the aforesaid regulations.

11. What is a PIO Card? Who Issues PIO Cards? How does one get a PIO Card?

Person of Indian Origin (PIO) Cards are issued by Ministry of External Affairs (CPV Division), Government of India to persons of Indian origin through Indian missions abroad. Specific information on rules, forms, particular offices, missions is available on the website http://www.passport.nic.in/

12. Can an NRI invest in foreign currency?

An NRI cannot make the investment in foreign currency. He needs to give us a Rupee cheque from his NRE and NRO bank account in India. He may also send a Rupee cheque from abroad, payable in a bank in India. However, for an NRI to invest, it is mandatory that he maintains a bank account in India.

13. What is the mode of payment for Repatriation and Non-Repatriation Basis?

Repatriable Basis: Payments for the purchase of the units may be made by Indian Rupee drafts purchased abroad, or by cheques drawn on the NRE Account of the investor, payable at the city where the application form is accepted by any of the branch offices of Sundaram Asset Management or SBNPFS Investor Service Centres.
Non-Repatriable Basis: Payments for the purchase of the units may be made by Indian Rupee drafts purchased abroad, or by cheques / demand drafts drawn on the NRO account of the investor, payable at the city where the application form is accepted by any of the branch offices of Sundaram Asset Management or SBNPFS Investor Service Centres.
FII Investors: FIIs may pay for their subscription amounts by Indian Rupee drafts purchased abroad, or from funds held in a Foreign Currency account or Non-resident Rupee account maintained in a designated branch of an authorised dealer. The Indian Rupee drafts/cheques should be made payable at a city where the application is accepted by any of the branch offices of Sundaram Asset Management or SBNPFS Investor Service Centres.

14. Will the fundhouse accept an NRI application with an overseas bank account detail?

No

15. How will the redemption proceeds be paid?

Redemption proceeds will be paid by cheque. The cheque will be payable to the first unitholder and will include the bank account number. Alternatively the redemption proceeds will be credited directly to the investor’s bank account. This facility is available with select banks as mentioned in our application forms. Redemption proceeds/repurchase price and/or dividend or income earned (if any) will be payable in Indian Rupees only. The fund will not be liable for any loss due to exchange fluctuations, while converting the Rupee amount into US Dollar or any other currency.

16. How can the redemption proceeds be repatriated?

The investments shall carry the right of repatriation of capital invested and capital appreciation so long as the investor continues to be a resident outside India.
In the case of an FII, the designated branch of the authorised dealer may allow remittance of net sale/maturity proceeds (after payment of taxes) or credit the amount to the Foreign Currency account or Non-Resident Rupee account of the FII, maintained in accordance with the approval granted to it by the RBI [Clause 5(i) of the Regulations].
In the case of NRIs: where the investment is made out of inward remittance or from funds held in the NRE account of the investor, the maturity proceeds/repurchase price of units (after payment of taxes) may be credited to the NRE account of the non-resident investor maintained with an authorised dealer in India [Clause 5(ii) of the Regulations].

17. What about redemption proceeds where investments were made on a non-repatriable basis?

Where the purchase of units is made on a non-repatriable basis, the maturity proceeds/repurchase price of units (after payment of taxes) will not qualify for repatriation and may be credited to the NRO account of the non-resident investor [Clause 5(ii) of the Regulations].
Similarly, investments in units purchased in Rupees, where the investor was a resident of India and subsequently becomes a non-resident, will not qualify for repatriation of repurchase proceeds of units.
The entire income distribution on the investment will, however, qualify for full repatriation. Investors are advised to contact their banks/tax consultants if they desire remittance of the income distribution on units abroad.

18. Will you transfer money to an investor's overseas account?

No. Investors need to contact their authorised dealers for this service.

19. Can an NRI fax a request followed by the original documents?

Units cannot be redeemed or allotted on the basis of fax applications. A request that lacks a valid signature cannot be processed due to legal restrictions.

20. Where can I get the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 and Schedule 5 thereof?

Visit the Reserve Bank of India (RBI) website at www.rbi.org.in