Fund received from NRI (OCI card holders) will be treated as domestic or foreign fund?
Answer: It can be either of one and depends on following two points.
Repatriable Investments (Foreign):
Such investments are made through money in Non-resident external (NRE) accounts or FCNR accounts. These type of accounts are funded by money remitted from abroad. Redemption proceeds of such investments can be repatriated.
Non-repatriable Investments (Domestic):
If the mutual fund investment was made through Non-resident ordinary account, the redemption proceeds can not be repatriated. However, as per RBI, authorised dealers can allow remittance/s upto USD 1 million, of balances in NRO accounts/of sale proceeds of assets on production of an undertaking by the remitter together with a certificate issued by a Chartered Accountant in Annexure A and B as prescribed by the Central Board of Direct axes (CBDT).
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Email: ask@fema.in
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