Carousel Script by v4.1
TROT Benefits
Non Residents

Can NRIs and PIOs buy TROT Products – A Gist

TROT Products can be purchased in any convertible foreign currency
Proceeds on sale of TROT products bought in foreign currency can be remitted back
Acquisition of the property under TROT terms is subject to Reserve Bank of India (RBI) rules
Remittance of the sale proceeds on sale of the property in future is also subject to RBI Rules

TROT Products do not provide any rights in the property but only a right to acquire it in future and it can be treated as a ‘Current Account Transaction’ under the foreign exchange regulations. Hence, there are no restrictions on buy or sale of TROT Products by any foreign national including NRIs and PIOs. The present guidelines for the Foreign Direct Investment (FDI) in realty sector would also not apply as TROT Product is not a ‘Financial Instrument’ or a ‘Security’.

Para 5.1 of the Master Circular No.8/2012-13 (Updated as on October 12, 2012) “A NRI or PIO may remit an amount up to USD one million, per financial year, out of the balances held in his Non- Resident (Ordinary) Rupee (NRO) account / sale proceeds of assets (inclusive of assets acquired by way of inheritance or settlement), for all bonafide purposes, subject to the satisfaction of the Authorized Dealer bank, and on production of an undertaking by the remitter and certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes”.

Further, para 7.2 of the said Master Circular provides that “Authorized Dealer banks may permit repatriation of amounts representing the refund of application / earnest money / purchase consideration made by the house building agencies / seller on account of non-allotment of flat / plot / cancellation of bookings / deals for purchase of residential / commercial property, together with interest, if any (net of income tax payable thereon), provided the original payment was made out of NRE / FCNR (B) account of the account holder, or remittance from outside India through normal banking channels and the Authorized Dealer bank is satisfied about the genuineness of the transaction. Such funds may also be credited to the NRE / FCNR (B) account of the NRI / PIO, if they so desire”.

Acquisition of immovable property in India by persons resident outside India (foreign national) is regulated in terms of section 6 (3) (i) of the Foreign Exchange Management Act (FEMA), 1999 as well as by the regulations contained in the Notification No. FEMA 21/2000-RB dated May 3, 2000, as amended from time to time. Section 2 (v) and Section 2 (w) of FEMA, 1999 defines `person resident in India' and a `person resident outside India', respectively. Person resident outside India is categorized as Non- Resident Indian (NRI) or a foreign national of Indian Origin (PIO) or a foreign national of non-Indian origin. (RBI notifications) Under the general permission available, the following categories can purchase immovable property in India:

Non-Resident Indian (NRI)
Person of Indian Origin (PIO)

The general permission, however, covers only purchase of residential and commercial property and is not available for purchase of agricultural land / plantation property / farm house in India. A NRI or POI can freely acquire the property under TROT terms provided the purchase consideration is remitted in foreign currency or paid out of his foreign currency account in India. He can buy the TROT products and acquire the property by paying the pre-fixed rate out of their Rupee bank accounts in India if remittance in foreign exchange on its future sale is not required. Repatriation of the sale proceeds equivalent to the original investment is allowed for a maximum of two houses as well as commercial property after 3 years of its possession or payment of the full consideration, whichever is later, provided that the consideration is paid in foreign currency remittance or out of foreign currency account maintained in India and are subject to certain monetary limits. Such sale needs to be informed to RBI within 90 days.


Email your query

P r e s e n t a t i o n s   

Realty Funds is a global e-trade platform for trading in the various TROT products of rated projects. It
does not sale its own TROT products or collect any deposits
Copyrights @2013 TROT Realty holds under licence rights, title and interest “IPRs” including its background IP, copyrights, patents, registered designs, trademarks together with any right or form of protection of a similar nature and having equivalent or similar effect to any of them anywhere in the world. Terms of Service