Are NRIs permitted to transfer PIS-purchased shares through private arrangements?
Non-Resident Indians (NRIs) are restricted from transferring shares acquired under the Portfolio Investment Scheme (PIS) through private arrangements. Shares bought under PIS must be sold exclusively on the stock exchange. Transfers by sale under private arrangements or by gifting (with the exception of gifts to relatives as defined in Section 6 of the Companies Act, 1956, or to a registered charitable trust in India) to individuals, whether resident in India or abroad, are not permissible without the Reserve Bank of India's prior approval.
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