Is there any restriction for alloting shares to an NRI?

Dear Ramanju,

As such there is no such restriction, if your company comes under automatic route you have to only send a report to RBI through Authorised Dealer Category I Bank in form FCGPR with in 30 days of allotment. Further, a report is also required to be send to RBI within 30 days of receipt of amount being the foreing inward remittance.

Otherwise you have to obtain a approval from the Central Government through FIPB. And then you can allot shares to them.

Please refer Foreign Exchange Management (Transfer or issue of securities by a person resident outside India) Regulations, 2000.

And RBI Master Circular foreign Investment In India.

here is the info.....