Transfer of shares between two NRI
This query is : Resolved
17 March 2008
Our company is having NRI shareholders. Two shareholders are holding the shares in physical form and one NRI wants to transfer the same to other NRI.
Please guide whether any RBI permission is involved in this and whether physical shares can be transferred between NRIs.?
Early responce is awaited.
Thanks in advance
Please guide whether any RBI permission is involved in this and whether physical shares can be transferred between NRIs.?
Early responce is awaited.
Thanks in advance
17 March 2008
Sale or transfer of shares and securities
Authorised dealers are permitted to undertake sale of government securities/units on behalf of NRIs without prior approval of RBI. Sale or maturity proceeds can be remitted to abroad if the original investment was made out of funds remitted from abroad or funds in NRE/FCNR accounts. Otherwise, they will have to be credited to NRO account of the holder.
Transfer of shares and debentures of Indian companies by NRIs to other non-residents does not require permission of RBI. However, the transferee NRI would need permission from RBI to purchase the shares.
NRIs are allowed to transfer or sell shares, debentures or bonds through stock exchanges. Provided, such transfers are made in favour of an Indian citizen or a person of Indian origin or a company incorporated in India and sale proceeds thereof are credited to NRO account.
In the case of shares, debentures and bonds acquired by NRIs through stock exchanges under the Portfolio Investment Scheme, general exemption has been granted for transfer through stock exchanges. But the sale should be arranged through the same designated branch through which it was purchased. In other cases, however, you need to apply for permission in Form TS 4 to RBI (if your bank is undertaking the task for you).
But if you handle the sale of shares and debentures on your own, you need to submit application form TS 1 to RBI.
RBI has granted general permission to NRIs, to transfer by way of gift, shares, bonds and debentures of Indian companies held by them (with RBI's permission) to their close relative/s.
Sale or transfer of shares and securities
Authorised dealers are permitted to undertake sale of government securities/units on behalf of NRIs without prior approval of RBI. Sale or maturity proceeds can be remitted to abroad if the original investment was made out of funds remitted from abroad or funds in NRE/FCNR accounts. Otherwise, they will have to be credited to NRO account of the holder.
Transfer of shares and debentures of Indian companies by NRIs to other non-residents does not require permission of RBI. However, the transferee NRI would need permission from RBI to purchase the shares.
NRIs are allowed to transfer or sell shares, debentures or bonds through stock exchanges. Provided, such transfers are made in favour of an Indian citizen or a person of Indian origin or a company incorporated in India and sale proceeds thereof are credited to NRO account.
In the case of shares, debentures and bonds acquired by NRIs through stock exchanges under the Portfolio Investment Scheme, general exemption has been granted for transfer through stock exchanges. But the sale should be arranged through the same designated branch through which it was purchased. In other cases, however, you need to apply for permission in Form TS 4 to RBI (if your bank is undertaking the task for you).
But if you handle the sale of shares and debentures on your own, you need to submit application form TS 1 to RBI.
RBI has granted general permission to NRIs, to transfer by way of gift, shares, bonds and debentures of Indian companies held by them (with RBI's permission) to their close relative/s.
18 March 2008
Thanks but what if the shares are physical form because stock exchanges can't deal in physical shares
18 March 2008
As its in the physical shares they dont have any probs
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