The Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on non-repatriation basis, subject to the following conditions :
Funds for investment should be provided by debit to NRO account of the NRI/ FII investor. Alternatively, funds may be invested by inward remittance or by debit to NRE / FCNR Account.
No permission of Reserve Bank either by the Mutual Fund or the NRI investor is necessary.
FII Investors. FIIs may pay for their purchases with funds held in a Foreign Currency account or Non-resident Rupee account maintained in a designated branch of an authorised dealer [Clause 3(1) of the Regulations]. Payments may be made by cheques payable at a city where the application is accepted by any HDFC Investor Service Centres.
Applications from FIIs should be accompanied by appropriate documentation supporting the status of the FII investor and should be sent to the AMC/ISC , so as to reach them not later than 7 days after the date of the subscription.
Similarly, in case of an application under a Power of Attorney or by an FII, the original Power of Attorney or the relevant resolution/authority to make the application (or a duly notarised certified true copy thereof), along with a certified copy of the Memorandum and Articles of Association and/or bye laws and Certificate of Registration should be submitted to the Mumbai ISC within 7 days from the date of the application. The officials should sign the application under their official designation.
The NRIs/PIOs/FIIs may also be required to furnish other documents needed to process their investments.