Whether a foreign National can open (NRO) Non resident Ordinary Rupee Account as per FEMA, FEMA

[GANESH PAI]

I am refering this case on behalf of one of my friends in Oman. He is presently AGM of one of the local banks here. That bank had a stake in Centurian Bank and at that time the employees of Bank were also given an option to acquire share of Centurian Bank.The person in question is Sudanese National who is having demat account and PAN also. He had requested to open one bank account with a new generation Private Bank in India which refused to open Non resident a/c of Foreign National. The purpose of his opening account is to dispose of his shares and repartiate the proceeds to Sudan for some other investment purpose. My issue is whether a foreign National can open NRO account as per FEMA. Whether he needs to take prior permission from RBI to off load his shares and repatriate the proceeds.

Posts / Replies

[Rama Krishana]

As per the provisions, Opening of accounts (NRO) by individuals/entities of Bangladesh / Pakistan nationality / ownership requires prior approval of Reserve Bank. - Otherwise no prior permission of RBI is required. - You may refer to FEMA circular dated 1-7-2009 under master circular category - http://www.taxmanagementindia.com/Site-Map/FEMA/detail_circular.asp?ID=6384