S.19
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Issue/Transfer of Shares and Securities to Persons Resident in Nepal and Bhutan
Issue and transfer of Indian rupee shares and securities to persons, firms, companies, etc. resident in Nepal require prior permission of Reserve Bank in terms of Section 19 of FERA 1973, even though the underlying sale transaction may be settled in Indian rupees. Purchase of such shares and securities of Indian company by persons, firms, companies resident in Nepal and Bhutan also requires approval of Reserve Bank under Section 29(1)(b) of FERA 1973. Remittance of divident/interest on shares/securities held by persons, firms, companies, etc. resident in Nepal and Bhutan in Indian rupees is not, however, subject to restriction.