In its endeavor to augment NRI investments in India, the Government has eliminated impediments to the extent possible and streamlined the process to a large degree, obviating even the need for approval from the RBI in some cases.

A plethora of options available to NRIs for investments in India, and a few guidelines listed below would ensure recurring gains on their dollars.

When and how do NRIs invest in India?
NRIs on vacation generally use the occasion to tap a few options for making investments in India - the time crunch sometimes forces them to close in on not very lucrative deals. When investments are not well thought of, and compromised decisions made, regrets follow. However, the thriving markets of late have given generous returns on investments, and NRI investors have really had no cause for complaint on that account.

For NRIs, remitting funds to India to their NRE or FCNR deposits is quite a costly affair, so even as more conveniences like cheques, wire transfers and online remittances services are being made available, transaction costs remain prohibitive.

The hidden cost of remitting money to India is a deterrent to making frequent transfers, so NRIs prefer to restrict their remittances to just once, or at best, twice a year, provided currency rates remain steady.

How does an NRI get started on investing in India?

A PAN card is the first and foremost requirement for making an investment in India. First generation NRIs who possessed a PAN card before they left for employment and stay overseas can continue to use the document for all transactions. For all other overseas Indians, a PAN card is easy to obtain from the private PAN facilitation centres which issue the Permanent Account Number for NRIs in a few days.

The next step for NRI investments in India would be to open a bank account. NRI accounts are taken care of by NRE deposits in the Indian currency, while FCNR deposits are maintained in any of the 6 designated currencies. NRIs can even appoint a local representative to operate their NRE account for them.

The local representative can also help in the actual stage of investing. While shares can be traded online, investments in real estate by NRIs require a power of attorney to be given to a local resident to execute the transactions on their behalf.. Similarly, payments for insurance premiums and other services can also be delegated to trusted local representatives.

Appointing a financial advisor who can render legal and financial advice on making sound investments would be the next step for an NRI investor to follow. Accredited financial advisors would be a safe route to take to be assured of secured and professional services.

Financial advisors assist NRIs in charting out long term investment portfolios, apportioning their funds in various asset classes, and adjusting the client’s rupee allocation to their requirements.

An informed decision on local practices helps set expectations and offset regrets. NRIs need to acquaint themselves with the local customs and the local laws on investment, banking and finance when making investments in real estate or the stock market.

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