To increase the funding of firm/ proprietary concern in India, RBI has liberalized the regulation for investment in capital of firm/ proprietary concern by person resident outside India.

 

The regulation also gives permission to a firm or a proprietary concern to make payment to a NRI or a PIO who has made investment.

 

Further, a firm or a proprietary concern in India may make payment to or for the credit of a NRI or a PIO the sum invested by such person in that firm or the proprietary concern or the income accruing to such person by way of profit on such investment.