Can Government securities/units be freely transferred or sold among NRIs and resident Indians?
In terms of paragraph 4 of Schedule 5 under Notification FEMA.20 / 2000 RB dated 3rd May 2000, NRIs who purchase Government Securities/ units of Mutual Funds may sell such securities through registered stock broker through recognised Stock exchange or tender them back to the issuers for re-purchase or on maturity for repayment. Transfer to another NRI is not barred by FEMA, if the purchase of such securities / units was made on repatriation basis.
