Can NRIs obtain loans abroad against the collateral of shares?

Question: Can NRIs obtain loans abroad against the collateral of shares/debentures of Indian companies?

Answer(s)

Raju Kanumuri: Yes. Authorised dealer have been permitted to grant loans/overdrafts abroad to NRIs through their overseas branches and correspondents against collateral of the shares/debentures of Indian companies held by them, provided the concerned shares/debentures were acquired on repatriation basis.

Source : Reserve Bank Of India

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