Investment Restrictions: NRIs may encounter various restrictions and regulations, as was previously said, and the procedure for doing so may be a bit challenging with regard to investing in the Indian market. An NRI located in the United States of America, for example, must be informed about the mutual fund companies that are active in India and must be permitted to invest in the aforementioned fund companies. This is necessary because mutual fund companies must complete a significant amount of paperwork and comply with numerous regulations before they can accept investments from NRIs living in Canada and the United States of America. This is done after they apply for the “Foreign Account Tax Compliance Act (FACTA)” related to the investment. Due to this rule, a small number of mutual fund companies operating in India allow investments from NRIs who reside in the United States. Additionally, NRIs who are citizens of another nation must confirm where they now reside by presenting the necessary documentation.