FEMA India Rules for NRI investments, accounts, and repatriation, made simple.

The Foreign Exchange Management Act, 1999 is the principal law that governs every financial transaction between a resident of India and a person outside India. For the global Indian community — Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) — FEMA determines what bank accounts they can open, where and how they can invest in India, how they can hold or inherit property, and how much money they can repatriate out of the country. The regime is detailed, evolves frequently through RBI circulars, and intersects closely with the Income Tax Act and the Double Taxation Avoidance Agreements India has signed.

For most NRIs, the practical FEMA touchpoints fall into a handful of categories — opening and operating NRE, NRO, and FCNR(B) bank accounts; investing in listed Indian shares under the Portfolio Investment Scheme or in unlisted shares, mutual funds, and bonds; acquiring or selling residential or commercial immovable property in India; receiving or making gifts and inheritances; investing in capital instruments of Indian companies and LLPs; and repatriating sale proceeds, dividend, rent, and pension income to the country of residence. Each of these has specific FEMA rules on permitted instruments, source of funds, holding period, repatriation cap, and tax treatment.

Our FEMA NRI practice acts as the long-term advisor for global Indian families and individuals. We provide written FEMA opinions on specific transactions, guide account selection between NRE, NRO, and FCNR, structure NRI investment portfolios, advise on property purchase and sale, handle repatriation under the USD 1 million scheme, prepare Forms 15CA and 15CB for outward remittance, manage tax filings for NRI rent and capital gains, and coordinate with banks, brokers, and registrars to keep the FEMA position clean year after year.