The key terms related to Investment in Investment Vehicle by PROI are as follows:
‘Investment Vehicle’ is an entity registered and regulated under relevant regulations framed by SEBI or any other authority designated for the purpose and will be Real Estate Investment Trusts (REITs) governed by the SEBI (REITs) Regulations, 2014, Infrastructure Investment Trusts (InvIts) governed by the SEBI (InvIts) Regulations, 2014 and Alternative Investment Funds (AIFs) governed by the SEBI (AIFs) Regulations, 2012.
‘Unit’ is the beneficial interest of an investor in an investment vehicle.
Investment in units of Investment Vehicle by PROI
A person resident outside India (other than a citizen of Pakistan or Bangladesh) or an entity incorporated outside India (other than an entity incorporated in Pakistan or Bangladesh) is permitted, with effect from November 13, 2016, to invest in units of Investment Vehicles.
The sale/ transfer/ redemption of units acquired/ purchased here are subject to the regulations framed by Securities and Exchange Board of India or the directions issued by the Reserve Bank.
An Investment vehicle can issue its units to a person resident outside India against swap of capital instruments of a Special Purpose Vehicle (SPV) proposed to be acquired by such Investment Vehicle.
The portfolio investment by an AIF (Cat III) which has foreign investment is restricted to the securities/ instruments permitted for FPIs under FEMA 20(R).
Mode of Payment in units of Investment Vehicle by PROI
The amount of consideration should be paid as inward remittance from abroad through banking channels or by way of swap of shares of a Special Purpose Vehicle or out of funds held in NRE or FCNR(B) account maintained in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016.
Remittance of Sale/Maturity Proceeds
The sale/ maturity proceeds (net of taxes) of the units may be remitted outside India or credited to the NRE or FCNR(B) account of the person concerned.
- Foreign Exchange
- Purchase/Sale of Capital Instruments of Indian Company by Person Resident Outside India
- Purchase/Sale of Capital Instruments by Foreign Portfolio Investors
- Purchase/Sale of Capital Instruments of Listed Company by NRI/OCI on Repatriation Basis
- Investment in India on Non-Repatriation Basis
- Purchase/Sale of Other than Capital Instruments by Person Resident Outside India
- Foreign Investment in LLP
- Foreign Venture Capital Investment in India
- Foreign Investment Reporting in India