NRI Bonds for UAE

NRIs in the UAE can invest in various Indian bonds by using NRE or NRO accounts, a PAN card and a demat account. Indian bonds include government securities, corporate bonds and PSU bonds. Further, NRIs can invest/trade in India’s GIFT City (IFSC) to access Indian and global markets with significant tax benefits.

High returns

Earn fixed returns of up to 13.25%

Low investment

Start investing with as little as ₹1,000

Low risk

Invest in AAA–BBB rated bonds

No brokerage

0% brokerage or commission fees

Google Play Store

4.5_/5

15.6L Reviews

5.7cr+Satisfied Customers

₹3,064 CrsInvestment Enabled

100+Bonds

Invest as Low as ₹1000 & Getup to 13.25% Returns

High returns

Earn fixed returns of up to 13.25%

Low investment

Start investing with as little as ₹1,000

Low risk

Invest in AAA–BBB rated bonds

No brokerage

0% brokerage or commission fees

Google Play Store

4.5_/5

15.6L Reviews

5.7cr+Satisfied Customers

₹3,064 CrsInvestment Enabled

100+Bonds

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NRI Bonds for UAE

NRIs are the individual resident outside India who is a citizen of India. They can sell or redeem their bonds in India in accordance with the terms and conditions specified by the RBI, FEMA and SEBI. UAE-based NRIs can invest in PSU bonds, infrastructure bonds and corporate bonds for stable or higher returns depending on the risk appetite of the investor. RBI allows UAE based NRIs to invest in T-Bills and G-Secs through a RBI Retail Direct portal.

How to Buy Bonds through Paisabazaar?

Get up to 13.25% from bonds in 5 simple steps

Step 1: Login to your Paisabazaar account

Step 2: Select the Bonds

Step 3: Complete the KYC process

Step 4: Enter bank details

Step 5: Link your demat account

Indian Bond Investment Opportunities for NRIs

Regulated by Foreign Exchange Management (FEM) (Debt Instruments) Regulations, 2019 and administered by RBI, NRIs of UAE can invest in the Indian debt market on the following basis, without any limit:-

On a repatriation basis:

Government dated securities (other than bearer securities) or treasury bills.
Bonds issued by a Public Sector Undertaking (PSU) in India.
Debt instruments issued by banks are eligible for inclusion in regulatory capital.
Listed non-convertible/ redeemable debentures issued in terms of Regulation 6 of these Regulations.
Bonds issued by Infrastructure Debt Funds.

NRIs can make investments out of inward remittances from abroad through banking channels or out of funds held in NRE/FCNR(B) accounts.

On a non- repatriation basis:

Government dated securities (other than bearer securities) or treasury bills.
Listed non-convertible/redeemable debentures issued in terms of Regulation 6 of these Regulations.

NRIs can make investments out of inward remittances from abroad through banking channels or out of funds held in NRE/FCNR(B)/NRO accounts.

Investment in Government securities by NRIs

T-Bills: Up to 12 months
Govt. Dated Securities: 5 – 40 years
Purchased via transfers to NRE/NRO/FCNR bank account
Auction: Securities purchased via AD/banks
G-Secs and T-Bills: Investment on a repatriation & non-repatriation (NRO) basis
Interest payment credited to NRE/NRO account

Fully Accessible Route (FAR): Govt Bonds/Gilts

Effective from 1st April 2020, the RBI has created a separate channel for NRIs to invest in specified bonds or securities to facilitate foreign capital inflow and deepen India’s debt market.

Also open to Foreign Portfolio Investors (FPIs) and Overseas Citizens of India (OCIs).
No caps or quantitative ceilings.
Major indices, including Bloomberg indices and J.P. Morgan's GBI-EM, include FAR bonds.
Free buy-sell access to bonds, as no prior approval is required.
Specific dated government securities are considered "FAR-eligible".

54EC Capital Gain Bonds for UAE Based NRIs

Indians residing in the UAE can also invest in capital gain bonds to claim deductions on capital gains arising from the sale of and or building (immovable property) in India.

Section 54EC bonds are issued by Rural Electrification Corporation Limited (REC bonds), Indian Railway Finance Corporation Limited (IRFC bonds) and Power Finance Corporation Ltd (PFC Bonds), offering 5.25% p.a. annually.
The maximum investment ceiling is Rs 50 lakh in a financial year.
These bonds are not traded on stock exchanges.
The principal amount is exempt from tax. However, interest income received from these bonds is taxable.
The investment in capital gain bonds must be made within 6 months from the date of the sale or property transfer.

Bond ETFs for NRIs

NRIs residing in the UAE can invest in Indian bond ETFs to gain portfolio exposure to AAA corporate bonds and government securities. These bonds offer safety in interest and principal repayments as they are considered low risk bonds.

Top choices include Nippon India ETF Nifty G-Sec funds and Bharat Bond ETF series (2030, 2031, 2032)
Investments can be made through an NRO or NRE bank account, which should be linked to a PIS or Non-PIS (Portfolio Investment Scheme) Demat account.

Bond Investment Opportunities in GIFT City for NRIs Residing in UAE

GIFT IFSC, located in Gandhinagar, Gujarat, is India’s maiden international financial services center. It offers various financial services, including fintech, insurance, capital markets, banking, asset management, etc., in foreign currencies and largely aimed at international investors.

NRIs can invest in masala bonds, rupee-denominated bonds issued by Indian corporates through GIFT (Gujarat International Finance Tec-City) IFSC.
Investors can also invest in green bonds that financially support environmentally sustainable projects like rain water harvesting, renewable energy and sustainable infrastructure.
UAE NRI investors can also invest in corporate bonds issued by Indian and foreign companies in currencies such as EUR, SGD, USD and GBP, through Gift City exchanges.

Tax Advantages

Long-term or short-term capital gains tax is exempt for UAE NRI investors trading in GIFT IFSC exchanges.
No Securities Transaction Tax (STT) does not apply in GIFT IFSC.
Commodities Transaction Tax (CTT) is also further not applicable.
No GST is charged on financial services rendered to NRIs.

How NRIs Can Invest or Trade in Gift City Centre

NRIs based in the UAE can invest in India’s GIFT City bypassing traditional banking restrictions, and get significant tax benefits.

NRIs can open a foreign currency account (IFSC Banking Unit (IBU) Account) by visiting an IFSC unit of a bank.
An IFSC Broker will help NRIs to get registered and trade on NSE IFSC or India INX with the help of the KYC documents - PAN card, Overseas Address Proof, Passport and tax residency certificates.
To start investing, NRIs need to transfer funds from an overseas bank account to the IBU account.

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How to Buy Bonds through Paisabazaar?

Get up to 13.25% from bonds in 5 simple steps

Step 1: Login to your Paisabazaar account

Step 2: Select the Bonds

Step 3: Complete the KYC process

Step 4: Enter bank details

Step 5: Link your demat account

FAQs

Which bonds can NRI invest in?

NRIs can invest in Government Bonds (G-Secs), Treasury Bills, Public Sector Undertaking (PSU) Bonds, Capital Gain Bonds (Section 54EC), corporate bonds and specified bonds under FAR route. India also offers investment opportunities in GIFT City centre for NRIs with tax benefits.

Can NRI invest in tax-free bonds?

There are no new issuances of tax free bonds. However, NRIs can purchase tax-free bonds from the secondary market via NRO Demat account. The tax-free status applies to resident Indians; NRIs pay 20% TDS on interest.