Yes, Non-Residential Indians (NRIs) are allowed to invest in some categories of government securities (G-Secs) since the 1st of April 2020. This was announced in the Union Budget for this fiscal. Accordingly, the Reserve Bank of India (RBI) introduced a mechanism called the “Fully Accessible Route” (FAR) in a bid to provide NRIs access to investments in G-Secs.
In this case, eligible NRIs are defined as “person/s resident outside India” as defined in section 2(w) of the Foreign Exchange Management Act, 1999 (42 of 1999) (FEMA). There is no investment ceiling in categories that are opened up for NRIs. Do note that NRIs will be eligible to invest in any G-Secs in the 5/10/30 year period issued since 1st April under the FAR mechanism opened up by the RBI. As of 1st April 2020, NRIs can invest in the categories given below-
Answer
Yes, Non-Residential Indians (NRIs) are allowed to invest in some categories of government securities (G-Secs) since the 1st of April 2020. This was announced in the Union Budget for this fiscal. Accordingly, the Reserve Bank of India (RBI) introduced a mechanism called the “Fully Accessible Route” (FAR) in a bid to provide NRIs access to investments in G-Secs.
In this case, eligible NRIs are defined as “person/s resident outside India” as defined in section 2(w) of the Foreign Exchange Management Act, 1999 (42 of 1999) (FEMA). There is no investment ceiling in categories that are opened up for NRIs. Do note that NRIs will be eligible to invest in any G-Secs in the 5/10/30 year period issued since 1st April under the FAR mechanism opened up by the RBI. As of 1st April 2020, NRIs can invest in the categories given below-