Introduction
In today’s global market, NRI investment India sparks many questions—especially around physical presence. I clarify the top myths and highlight the actual regulations. As a result, you’ll understand how NRIs can invest remotely without travelling to India.
What Is “NRI Investment India” Physical Presence Requirement?
- Many AMCs claim you must visit an Indian branch.
- However, this stems from internal policies, not legal mandates.
SEBI & PMLA KYC Rules for NRIs
SEBI’s IPV Guidelines
- Overseas IPV: Authorised agents or Notary Public can verify you abroad.
- Video IPV Option: Remote video calls now satisfy KYC.
- Attestation: Indian Consulates, local bankers, or courts can attest documents.
FEMA Regulations & Residential Status
- Definition: “Resident” vs “Non-Resident” depends on duration and intention, not physical timestamp.
- Freedom to Invest: NRIs use NRE/NRO/FCNR accounts and invest under the automatic route—no India visit needed.
AMC Policies vs. Legal Requirements
- AMC Convenience: Some firms insist on in-branch IPV to simplify FATCA/CRS checks.
- Real Rule: Indian law allows remote KYC solutions—AMCs choose stricter paths for operational ease.
US Tax Implications (PFIC & FATCA)
- PFIC Rules: US treats foreign funds as PFICs with specific tax rates and Form 8621.
- FATCA: US persons file Form 8938 for offshore holdings.
Canadian Reporting (CRS & T1135)
- CRS: Indian institutions report Canadian accounts automatically.
- T1135: Canadians declare foreign property > C$100,000, but no India‐visit rule applies.
Conclusion
Finally, the physical presence requirement for NRI investment India is a myth. Indian regulations empower remote KYC/IPV, and US/Canada tax laws add reporting steps—not bans.
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Harshaditya Kabra
+91-88277-53530
https://www.linkedin.com/in/ca-harshaditya/
https://accorgconsulting.com/
