Is the Reserve Bank permission required by NRIs for sale/transfer of Indian company shares?

Question: Is permission of Reserve Bank required by NRIs for sale/transfer of shares/debentures of Indian companies to other NRIs?

Answer(s)

Raju Kanumuri: No. Transfer of shares/debentures of Indian companies by NRIs to other non-residents does not require permission of Reserve Bank. However, the transferee NRI would need permission for purchase of such shares for which an application is required to be made to Reserve Bank in form FNC 7.

Source : Reserve Bank Of India

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