NRIs must have a NRO or NRE bank account to invest in Indian mutual funds, as AMCs cannot accept foreign currency investments. All investments by NRIs are made in Indian Rupees.
The Indian market offers a plethora of options for NRIs to invest and create wealth. These range from equities to mutual funds, fixed deposits, and debt funds.
As one of the emerging economies in the world, the Government of India has allowed NRIs to invest in Mutual Funds in conjunction with SEBIs rules of the Foreign Exchange Management Act(FEMA) ensuring that the investment process is transparent. However, it is important to note that certain asset management companies dont accept mutual fund applications from NRIs in Canada and the US.
Filed as a Public Interest Litigation (PIL) by Advocate and BJP leader Ashwini Kumar Upadhyay, the plea brings up the need for a Uniform Banking Code for foreign exchange transfers to regulate benami transactions and the creation of black money.