Can trading account be opened for person’s resident outside India who had been allotted shares under ESOP scheme?
Listed Indian companies are allowed to issue shares under the Employees Stock Option Scheme (ESOPs), to its employees or employees of its joint venture or wholly owned subsidiary abroad who are resident outside India, other than to the citizens of Pakistan. In such a case, Trading account can be opened for the person resident outside India only for the sole objective of selling of shares acquired under ESOP Scheme.
In case a non-resident Indian becomes a resident in India or vice versa, will he/she be required to open a new trading account?
Yes, Trading member needs to open a new trading account which needs to be uploaded with the new category code (01 – Resident Individual) & (11 – NRI) as may be applicable. References • RBI Master Circular dated RBI/2010-11/13 dated July 01, 2010. • ...
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 ...
If an NRI becomes a resident in India, what needs to be done?
If the NRI becomes a resident of India, it is his/her responsibility to inform the change of status to the designated authorized bank, through which the investor had made the investments and FYERS. Subsequently, he needs to initiate the new account ...
What is a Portfolio Investment scheme?
Portfolio Investment Scheme (PIS) is an RBI scheme that enables Non-Resident Indians to buy and sell shares on a repatriation basis in Indian stock markets. Important features of a PIS account: The PIS bank account is used only for investing in ...
Why can’t I take delivery of shares if I have not opened a Demat account?
Whenever you buy shares and decide to hold it for a week, a month, or years together then shares bought are deposited in Demat account in dematerialised form, as Demat account holds shares and securities in electronic custody. If you don’t have Demat ...