Can one NRI transfer shares/securities to another NRI directly ?
In exercise of powers conferred by clause (b) of sub-section (1) of Section 29 and sub-section 4 of section 19 of the Foreign Exchange Regulation Act, 1973 (46 of 1973), the Reserve Bank of India permits, • Non-Residents to acquire shares of companies incorporated in India from other Non-Residents (other than Overseas Corporate Bodies, Non-Residents Indians and Persons of Indian Origin) by way of sale/transfer provided the transferor/seller had acquired the shares under general/special permission of reserve Bank. • Non-Resident Indians and Persons of Indian Origin and overseas Corporate Bodies to acquire shares of companies incorporated in India from other Non-Resident Indians, Persons of Indian origin or Overseas Corporate Bodies by way of sale/transfer provided the transferor had acquired the shares under general or special permission of Reserve Bank. The rights of the transferee/purchaser in respect of shares so acquired, shall be subject to same restrictions and conditions as were
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