How can NRIs invest in the Indian Government securities(G-Secs)?
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Given below is the process by which NRIs can invest in G-secs-
-NRIs can invest in these bonds by going through the bank that maintains their NRE account. Alternatively, NRIs could approach the stockbroker who maintains their Demat account.
-Since the procedure to issue G-sec bonds involves submitting bids for an auction within a set time period in a week (generally Tuesday to Thursday), it would require specialized knowledge on the part of the bank or a broker to participate in the auction. Not all banks or stockbrokers are familiar with the process.
-In this case, an NRI can contact specialized banks which specifically have treasury operations unit or they can contact authorized dealers appointed by the RBI to participate in the auction process.
-An NRI PIS Account (Portfolio Investment Scheme Account) would enable investments on a repatriation basis.
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