Is Registration of shares/securities compulsory if NRIs/OCBs buy under Portfolio Investment Scheme ?
Registration of shares and securities is not compulsory when the NRIs and OCBs buy under PIS and pay through the NRE account or Inward remittance source. However, for seeking repatriation of the funds invested, they must take the delivery of the scrips through the stock exchange and also give delivery of scrips while selling. In these cases, short selling is not permitted. Q6) Can one NRI transfer shares/securities to another NRI directly ? A) 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 Person
