Key takeaway
NRIs can invest in most Indian assets, but the route matters: which account the money comes from, whether the investment is repatriable, and which FEMA rules apply. Get the structure right at the start to avoid problems when you sell or bring money back.
Main options
- Listed shares — through a designated bank under the portfolio investment route, with individual and aggregate limits per company.
- Mutual funds — permitted for NRIs; some fund houses restrict investors resident in certain countries.
- Bank deposits — NRE, NRO and FCNR deposits.
- Property — residential and commercial, but not agricultural land, plantations or farmhouses.
- Private companies and LLPs — under the foreign investment rules.
Repatriable or not
Investments made from NRE or FCNR funds, or from abroad, are usually repatriable. Investments from NRO funds are generally non-repatriable, though NRO balances can be remitted within the annual limit after tax.
Accounts you will need
- NRE and/or NRO bank accounts
- Demat and trading accounts of the correct type
- PAN and KYC with your current overseas address
Tax points
- Capital gains and dividends are taxed in India, often with TDS.
- Treaty relief may reduce double taxation; a tax residency certificate is usually needed.
- Report Indian investments as your country of residence requires.
Common mistakes
- Continuing to hold resident accounts after becoming an NRI.
- Using the wrong demat account type.
- Investing through relatives’ names to avoid rules.
- Ignoring home-country reporting.
Frequently asked questions
Can NRIs trade in Indian shares?
Yes, through the permitted routes and accounts, with some restrictions on intraday and certain products.
Can I invest in a friend’s start-up?
Yes, subject to FEMA rules on foreign investment and reporting.
Can I buy property as an investment?
Yes, residential or commercial, not agricultural land.
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References
- Foreign Exchange Management (Non-Debt Instruments) Rules, 2019
- Foreign Exchange Management (Deposit) Regulations, 2016
- Income-tax Act, 2025
Last reviewed: November 2026.
The information provided is for general educational purposes only and does not constitute legal advice. Applicable laws and procedures may vary depending on the facts, jurisdiction, and circumstances of each matter. Consult a qualified legal professional before taking action.
