The Following persons constitute Non-resident Indians: -

A. Indian citizens who stay abroad for employment or for carrying on any business or vocation or for any other purpose in circumstances indicating an indefinite period of stay outside India.

B. Indian citizens working abroad on assignments with foreign Governments, Government agencies or international/multinational agencies like United Nations Organization (UNO), International Monetary Fund (IMF), World Bank (IBRD), etc.

C. Officials of Central and State Governments and public sector undertakings deputed abroad on assignments with foreign Governments/agencies/ organizations or posted to their own offices (including Indian Diplomatic Missions) abroad.

Non-resident Indians become resident in India only when they come back to India for employment or for carrying on in India any business or vocation or for any other purpose indicating an indefinite period of stay in India. They are not regarded as person resident in India during their short visits to India, say, on holiday, leave, etc.

Investment in Housing and Real Estate Development :-

NRIs/OCBs will be permitted to invest up to 100% in the new issue of equity shares convertible debentures of Indian companies engaged in the following areas:-

• Development of serviced plots and construction of built up residential premises.
• Real estate covering construction of residential and commercial premises including
   business center's and offices.
• Development of township.
• City and region level urban infrastructure facilities including roads and bridges.
• Manufacturing of building materials.
• Financing of housing development.

Repatriation of original investment in this case will be permitted by Reserve Bank only after a lock in period of three years from the date of issue of the equity shares/convertible debentures. Applications for the purpose should be made to Reserve Bank (Central Office) in form ISD(R). OCBs will be permitted to repatriate net profit (up to 16 per cent) arising from sale of such investment after the lock-in-period of three years.