Sale / Transfer of Securities by NRIs |
No. Authorized dealers have been permitted to undertake
sale of Government securities/units on behalf of NRIs without prior approval of Reserve
Bank. Sale/maturity proceeds can be remitted abroad if the original investment was made
out of funds remitted from abroad or funds in NRE/FCNR accounts. Otherwise, they will have
to be credited to NRO account of the holder.
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No. Transfer of shares/debentures of Indian companies by
NRIs to other non-residents does not require permission of Reserve Bank. However, the
transferee NRI would need permission for purchase of such shares for which an application
is required to be made to Reserve Bank in form FNC 7.
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Ans.III
Yes. General exemption has been granted by Reserve Bank
for transfer/sale of shares/debentures/bonds by NRIs/OCBs through stock exchanges if such
transfers are made in favor of an Indian citizen or a person of Indian origin or a company
incorporated in India and sale proceeds thereof are credited to NRO account.
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Ans.IV
In the case of shares /debentures /bonds acquired by NRIs
through stock exchanges under the Portfolio Investment Scheme, general exemption has been
granted for transfer through stock exchanges provided the sale is arranged through the
same designated branch through whom they were purchased. In other cases, applications for
necessary permission is required to be made to Reserve Bank in form TS 4.
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NRIs are required to submit application in form TS 1 to
Reserve Bank for sale of shares/debentures by private arrangements.
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Yes Reserve Bank has granted general permission to NRIs to transfer, by way of gift, shares, bonds and debentures of Indian companies held by them with Reserve Bank's permission to their resident close relative/s.