How can NRIs Invest in IPOs in India?

Yes, NRIs are allowed to invest in IPOs in India under the NRI category through stock exchanges (NSE/BSE). Investments permitted on repatriation (NRE) or non-repatriation (NRO) basis are subject to 5% individual and 10% aggregate paid-up capital limits per company.

To invest in an NRI IPO, an NRE account is required for repatriable investments (fully transferable abroad) and an NRO for non-repatriable (Indian income only). You can use ASBA (Application Supported by Blocked Amount) for blocking funds until allotment.

Convert your resident demat account to NRI status (NRE or NRO) and link it to your NRO/NRE bank account. Submit IPO applications through your broker using ASBA or UPI under the NRI category (retail threshold is up to Rs. 2 lakh). PIS permission is not required for primary market (IPO) investments, which are processed under the non-PIS route.

No, PIS (Portfolio Investment Scheme) is mandatory only for secondary market trades (post-linking stocks). IPOs are the main market, so direct through ASBA without the requirement of RBI PIS permission. Post-allotment shares are held in NRI demat.

A single NRI can invest up to 5% of the company's post-issue paid-up capital. Combined holdings by all NRIs are restricted to 10% of the paid-up capital. Companies can raise the aggregate limit to 24% (or higher in some cases). Exceeding these limits triggers pro-rata rejection of bids, often announced via exchange 'caution' or 'stop-purchase' circulars.