What are the restrictions for NRIs while purchasing shares and Debentures quoted on the Stock Exchanges in India?
– NRIs can make portfolio investments in shares and Debentures quoted on the Stock Exchanges in India with full benefits of repatriation of capital and income thereon subject to the following conditions. Portfolio investments in shares/debentures by NRIs/OCBs are permitted only through designated branches of authorised dealers preferably located at centres having stock exchanges. Authorised dealers should inform the names of such branches to Central Office of Reserve Bank and obtain approval. The Code number allotted by Reserve Bank should be quoted in all correspondence undertaken with Reserve Bank in this regard. Non-resident investors can also authorise Indian residents or stock exchange brokers as their agents in India to purchase/sell shares on their behalf under the schemes but all transactions should be routed through the designated branch of authorised dealer. The payment is received through an inward remittance in foreign exchange or by debit to the investor’s NRE/FCNR account
Related Questions
- What developments have been made in portfolio investment in equity/preference shares or convertible debentures through stock exchanges in India?
- What are the restrictions for NRIs while purchasing shares and Debentures quoted on the Stock Exchanges in India?
- How critical is the issue of delisting of shares from stock exchanges by Indian companies?
