NRI, POI, FII & Definitions for investment in mutual funds in India
1] Who is a Non-Resident Indian (NRI)?
Ans: NRI is a person who is a citizen of India or Person of Indian Origin (PIO) who has stayed abroad for employment/carrying out business or vocation for 182 days or more or under circumstances indicating an intention for an unknown duration of stay abroad is a Non-Resident Indian (NRI).
Those who stay abroad on business visits, for medical treatment, study or such other purposes, which do not indicate an intention to stay there for an indefinite period, are not considered as NRIs.
2] Who is a Person of Indian Origin (PIO)?
Ans: A Person of Indian Origin (PIO) means a citizen of any country (other than Bangladesh or Pakistan), if :
- He/She at any time has held an Indian passport or
- He/She or either of his / her parents or grand parents was a citizen of India by virtue of the constitution of India or Citizenship Act, 1955 (57 of 1995) or He / She is a spouse of an Indian citizen or of a person referred above.
Who is a Foreign Institutional Investor (FII)?
Ans: FII means an institution established or incorporated outside India, which proposes to make investments in Indian securities and is registered with SEBI.
Mutual Fund distribution mostly served by mutual fund intermediary. NRI’s can approach mutual Funds intermediary. Mutual Fund intermediary is also known as in some parts as Mutual Fund Advisor, Mutual Fund Distributors, Mutual Fund Brokers, Mutual Funds Consultants, Mutual Funds Agents, Mutual Fund Investment / Financial Advisors. NRIs can invest lumpsum as well as SIP /STP/SWP etc.from intermediary.
Please check updated rules time to time.