The important points for your consideration are as under
- That the investment by NRI in India company shall be treated as an investment at Par with other Indian investors
- The amount of consideration should be received from abroad through banking channels or paid out of funds held in NRE/ FCNR(B)/ NRO accounts maintained in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016.
- In case the NRI wishes to sell his investment in an Indian company then the sale proceeds shall be remitted to the NRO account only, irrespective of the mode of remittance at the time of making the investment in India.
Also, the investment made by NRI shall not be considered as a foreign liability, hence the annual reporting to RBI is also not required