Mumbai, Oct 29: The Reserve Bank of India (RBI) has further relaxed investment guidelines for non-resident Indians (NRIs). The RBI has granted general permission to Indian companies for issuing non-convertible debentures (NCDs) by way of public issue to NRIs/OCBs on a repatriation basis.

The central bank has said that Indian companies need not take permission from the RBI. The RBI has also said that authorised dealers may grant rupee loans and overdrafts in India to NRIs against the security of shares, securities, debentures or immovable properties held by them for purposes other than investments.

The RBI has also decided to delegate powers to authorised dealers to permit portfolio investments by NRIs/persons of Indian origin (PIOs) and Overseas Corporate Bodies (OCBs) in shares and debentures. At present, NRIs/PIOs/OCBs are permitted portfolio investments in shares and debentures.

These permissions by RBI are originally for a period of five years and can be renewed by designated banks. According to Jalan, these measures are being taken to create an environment which is favourable to investment and strenghthening of financial links with the NRI community abroad.