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Portfolio Investment Scheme

Dhanlaxmi Bank's Portfolio Investment Scheme helps NRIs invest money in India. Of the various investments an NRI can make in India, he/she can have the interest, dividend or returns from these investments credited to his/her Non-Resident Ordinary account (NRO) or Non-Resident External account (NRE) depending on whether it is a repatriable or a non-repatriable investment.


Under the Portfolio Investment Scheme NRIs or PIOs can invest their money in the following, subject to certain criteria as mentioned below:

  • Non-Resident Indians) NRIs and (Persons of Indian Origin) PIOs can purchase sell the shares and convertible debentures of Indian companies on Stock Exchanges under the Portfolio Investment Scheme. For this purpose, the NRI/PIO has to apply to a designated branch of a Bank that deals in Portfolio Investments.
  • All sale and purchase transactions are routed through the designated branch. An NRI or a PIO can purchase shares up to 5% of the paid up capital of an Indian company.
  • Not more than 10% of the paid up value of any the company in total can be purchased by NRIs and/or PIOs, including those who have purchased shares under the prevailing Portfolio Investment Scheme. (This limit can be increased by the Indian company to 24% by passing a General Body resolution).
  • Investments can be made both on repatriation and/or non-repatriation basis.
    • Payments for investments on repatriation basis can be made through inward remittances or from the Non-Resident External account (NRE) or the Foreign Currency Non-Resident deposit account (FCNR) of the NRI or PIO.
    • Payments for investments on non-repatriation basis can be made by debits from Non-Resident External account (NRE), the Foreign Currency Non-Resident deposit account (FCNR) or the Non-Resident Ordinary account (NRO).
  • The sale proceeds of the repatriable investments can be credited to the NRE or NRO account of the NRI or PIO whereas the sale proceeds of non-repatriable investment can be credited only to the NRO account.
  • The sale of shares will be subject to payment taxes, wherever applicable.

Investment Repatriation

Investments with the following can be repatriated to the NRI abroad:


  • Government dated securities / treasury bills.
  • Units of domestic Mutual Funds.
  • Bonds issued by Public Sector Undertakings in India.
  • Shares in Public Sector Enterprises that are disinvested by the Government of India. (The purchase should be in accordance with the terms and conditions stipulated in the notice inviting bids).
  • Shares and convertible debentures of Indian companies under Foreign Direct Investment scheme (including automatic route and FIPB).
  • Shares and convertible debentures of Indian companies through stock exchanges under the portfolio Investment Scheme.
  • Deposits with India companies and non-banking finance companies registered with RBI, housing finance companies and other financial companies and financial institutions.

Non-repatriation Investments

Investments that cannot be repatriated to the NRI abroad are as follows:
  • Units of Money Market Mutual Funds in India.
  • The capital of firms or proprietary concerns in India other than those relating to agricultural, plantation properties, farmhouses or real estate businesses.
  • Investment in Non Convertible Debentures

Investment in immovable properties

Immovable properties NRIs can purchase in India are as follows:

* An NRI may purchase immovable property in India out of repatriable or non-repatriable funds, other than agricultural properties, plantation properties and farm houses.

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