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Can sale proceeds of the shares/debentures be remitted abroad for liquidation of outstanding against such loans/overdrafts?

April 26, 2017abroad debentures Liquidation Loans overdrafts proceeds remitted sale Shares

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Can sale proceeds of the shares/debentures be remitted abroad for liquidation of outstanding against such loans/overdrafts?

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Yes. Shares / debentures, purchased on repatriation basis can be free sold and repatriated out of India. Use of such sale proceeds for liquidation of outstanding loans is not governed by FEMA, and NRIs may make use of such funds for any purpose, including liquidation of outstanding loans. Top • Can NRIs keep deposits with companies in India with repatriation benefits? Yes. NRIs can invest in deposits with companies in India, on repatriable basis, under general permission given under Regulation 7 (1) of Notification FEMA 5 / 2000-RB dated 3rd May 2000. The conditions subject to which such deposits could be held is set out in Schedule 6 to the above notification, which include that the amount for such deposits has to be remitted from abroad or the deposit has to be made out of repatriable funds like NRE/ FCNR deposits in banks held by investing NRIs. Top • Do NRIs need permission of Reserve Bank for placing funds in fixed deposits with firms/companies on non- repatriation basis? No. NRIs

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Yes, subject to payment of Income tax, Capital Gains tax etc. payable, if any.