Calcutta, Nov. 3: After all the brouhaha over big-ticket NRI investments in the Indian stock market, Reliance Capital Mutual Fund is introducing an open-ended equity scheme aimed at Indians living abroad.
Though subscription to the scheme — Reliance NRI Equity Scheme — is not restricted, it is positioned as an investment vehicle for non-resident Indians. The minimum investment in the scheme is Rs 10 lakh.
NRIs could invest in the scheme on ‘fully repatriable basis’, which means they could freely take their money out of India. The scheme would invest 80-100 per cent of its corpus in shares — mostly BSE-200 stocks, says the draft offer document. Up to 20 per cent of the corpus could be invested in fixed-income products. The scheme has also sought approval for investing in derivative instruments and in financial assets abroad.
Residents, too, could subscribe to the scheme, but given the high minimum investment, the scheme is unlikely to be attractive to Indian investors, say experts.
Dalal Street has been abuzz with rumours that NRIs have been investing big sums in shares of Indian companies through foreign institutions.
But figures published by Sebi — the securities market regulator — late last month show 84 per cent of the Rs 72,965 crore that FIIs invested in India came from the likes of mutual funds, pension funds, banks and investment companies.
There is, however, no denying that there’s a great appetite for Indian shares amongst NRIs.