Can an NRI transfer shares purchased under PIS to others under private arrangement?
Shares purchased under Portfolio Investment Scheme (PIS) on stock exchange must be sold on stock exchange only. Such Shares cannot be transferred by way of sale under private arrangement or by way of gift (except by NRIs to their relatives as defined in Section 6 of Companies Act, 1956 or to a charitable trust duly registered under the laws in India) to a person resident in India or outside India without prior approval of the Reserve Bank.
What is a PIS letter?
Portfolio Investment Scheme is the scheme of the Reserve Bank of India (RBI) that helps Non-Resident Indians (NRIs) to Buy or Sell Equity shares in the Indian stock markets. PIS letter is to be issued by the bank where you have opened your NRE/NRO ...
What is an NRO Non-PIS account?
Under the NRO Non-PIS account, an NRI can Buy & hold Equity Shares, Convertible Debentures/Preference shares, Bonds, Warrants, etc., on a non-repatriation basis. All the investments made by the NRI in this account will be considered domestic ...
Can an NRI trade in Equity Intraday?
No, an NRI has to take delivery of shares purchased and give delivery of shares sold from the Demat account. Short Selling is not permitted for NRIs as per the regulations. To initiate the NRI account opening, kindly fill-in your details here.
How to transfer funds to my NRO Non-PIS trading account?
Unlike a resident account, NRI clients must maintain two separate sets of funds: Equity Investing: To buy Equity in Delivery, NRI clients can transfer the funds using any of the below methods: Instant Payment Gateway. NEFT/RTGS IMPS To know more, ...
Can rights/bonus shares be issued to NRI?
FEMA provisions allow Indian companies to issue Rights/Bonus shares to existing non-resident shareholders, subject to adherence to sectoral cap as may be applicable.