Meaning of NRI & PIO

NRI/PIO Investment Services

India being one of the most prospective markets for foreign investments, it brings in dynamic business ideas and vast investment through NRIs, PIOs and Foreign entities. BMC’s expert team assists you in planning and choosing most suitable way of investing and complying with all the legal requirements, right from bringing in money till repatriation of profit back to your home country.

Meaning of Non-Resident Indian (NRI) & Person of Indian Origin (PIO)

Definitions of these terms are very important and are to be clearly perceived by the Investor while making an investment decision.

Non-Resident Indian (NRI):

Non Resident Indian (NRI) means a person who has gone out of India or who stays outside India, in either case for or:

• On taking up employment outside India, or

• For carrying on outside India a business or vacation, or

• For any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period.

Simply, it means a person resident outside India who is a citizen of India or is a Person of Indian Origin.

When does a Non-resident Indian become a resident of India?

A Non-Resident Indian will be treated as a person resident in India, if he returns to or stays in India, for:

Taking up employment in India, or

Carrying on a business or vocation in India, or

Any other purpose for an uncertain period

Person of Indian Origin (PIO):

• For the purposes of availing of the facilities of opening and maintenance of bank accounts and investments in shares/securities in India,

  Person of Indian Origin means any person:

  • Who at any time, held an Indian passport; or
  • He/she or either of his/her parents or grand parents or great grand parents was born in or permanently resident in India as defined in the Government of India Act, 1935 and other territories that became part of India thereafter provided neither was at any time a citizen of any country as may be specified by Central Government from time to time; or
  • The person is a spouse of an Indian citizen or a person referred to in clause (a) or (b) above.

• For investments in immovable properties;

  Person of Indian Origin means an individual (not being a citizen of Pakistan or Bangladesh or Afghanistan or Bhutan or Sri Lanka or Nepal or China or Iran):

  • Who at any time, held an Indian passport; or
  • Who or either of whose father or whose grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).