Passlane Sign in

Ch.9 · KYC and Folio Management · hard

Under FEMA regulations, NRI mutual fund investments are classified as:

0% of students got this wrong

EXPLANATION

NRI investments in mutual funds are classified as portfolio investments under Schedule 5 of the Foreign Exchange Management Act (FEMA). These are regulated by RBI guidelines and must route through NRE/NRO/FCNR accounts.

A.Foreign Direct Investment (FDI)

B.External Commercial Borrowing (ECB)

C.Portfolio Investment under Schedule 5 of FEMA [✓ Correct]

D.Overseas Direct Investment (ODI)

EXPLANATION

NRI investments in mutual funds are classified as portfolio investments under Schedule 5 of the Foreign Exchange Management Act (FEMA). These are regulated by RBI guidelines and must route through NRE/NRO/FCNR accounts.

Practising Chapter 9 one question at a time?

Try the full chapter — 80 questions, tracked score, weak area breakdown.

Practice Chapter 9 →Take the mock test →