There is a definite surge of NRI investments in Indian stock market. At times, they may get worried; each time the Indian stock indices take a plunge. However, this is a common scenario for them.

When the Bombay Stock Exchange (BSE) fell by 617 points, it created a tense situation for most NRI investors. Despite all, the Sensex has always been successful in grabbing the attention of prospective investors.

For the simple speculators, the market tumbles bring gloom, but for the investor, investing in Indian stock market is something to feel happy about. For that reason, long term investors always wish the market to strike equilibrium of neither being overheated nor burnt down.

NRIs investing in stocks are believed to be smart investors, contrary to the behavior of the investors making investment in Indian retail sector. NRI investments in Indian Equities have certainly shot up over the past few months.

The market alone accounted to NRI investments worth Rs 1bn in less than two months. High rupee-dollar rate was what putting off the NRI investors from pumping in Indian stocks.

But, the latest corrections in the market again opened all the doors for NRI investments. As per the figures showcased by BSE data, NRIs were net buyers at Rs286.8m and Rs703m in February and March, respectively. In January, they were sellers at Rs21.6m.

NRIs, foreign firms, and individuals may be allowed to make investments in the local stock markets by registering with foreign institutional investors (FIIs), who will further be responsible for any transgression of investment and regulatory norms in sub- accounts and will have to carry out all checks on the investors.

Securities and Exchange Board of India (SEBI) will have to redraft its rules and regulations relating to FIIs to facilitate the amendments. Likewise, RBI will require modify the Foreign Exchange Management regulations since NRIs just have the permission to invest only through Portfolio Investment Schemes.

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