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Ch.9 · KYC and Folio Management · medium

A Person of Indian Origin (PIO) wants to invest in Indian mutual funds. Which of the following is TRUE?

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EXPLANATION

Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs) are treated similarly to NRIs for mutual fund investment purposes. They can invest on both repatriable (NRE) and non-repatriable (NRO) basis.

A.PIOs can invest on a repatriable basis through NRE accounts, similar to NRIs [✓ Correct]

B.PIOs are not permitted to invest in Indian mutual funds

C.PIOs can only invest through NRO accounts on a non-repatriable basis

D.PIOs require special SEBI approval for each mutual fund investment

EXPLANATION

Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs) are treated similarly to NRIs for mutual fund investment purposes. They can invest on both repatriable (NRE) and non-repatriable (NRO) basis.

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