10C.25
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Sale/Transfer of Shares/Bonds/Debentures by NRIs to Residents
(i)In order to facilitate quick transfer of shares/bonds/debentures held by NRIs to residents, Reserve Bank has granted general exemptions by Notifications issued under Section 19(6) of FERA1973 for sale/transfer of shares/bonds/ debentures through stock exchanges in India subject to fulfillment of certain conditions. The details of these exemptions have been explained in paragraphs 10C 26 and 10C 27.
(ii)Applications for sale/transfer of shares / bonds /debentures held by NRIs/OCBs by private arrangement i.e. other than through stock exchange should be made to Reserve Bank in form TS 1 either by the transferor or the transferee, attaching therewith the letter of consent of the other party irrespective of whether the shares/bonds/ debentures are listed on a stock exchange or not. While conveying its approval, Reserve Bank will stipulate the conditions subject to which the sale/transfer should be effected. In cases of sale/transfer of shares/bonds/debentures acquired on repatriation basis, repatriation of such proceeds of bulk holdings (i.e. shares/bonds/debentures exceeding Rupees one lakh in face value or 5% of the companys paid-up capital whichever is lower) will be permitted only on production of a certificate from a Chartered Accountant or the concerned companys secretary stating that shares with necessary transfer forms duly signed have been received/lodged with the company for registration in favour of the transferee.