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Can a resident individual in India acquire/sell foreign securities without prior approval of the Reserve Bank?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Uma asked over 2 years ago

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3 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

a. Out of funds held in the RFC account; b. As bonus shares on existing holding of foreign currency shares; c. When not permanently resident in India, from the foreign currency resources outside India.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 jitendra etikala answered over 2 years ago

Resident individuals can acquire/sell foreign securities without prior approval in the following cases: - 1.as a gift from a person resident outside India; 2.by way of ESOPs issued by a company incorporated outside India under Cashless Employees Stock Option Scheme which does not involve any remittance from India; 3.by way of ESOPs issued to an employee or a director of Indian office or branch of a foreign company or of a subsidiary in India of a foreign company or of an Indian company irrespective of the percentage of the direct or indirect equity stake in the Indian company; 4.as inheritance from a person whether resident in or outside India; 5.by purchase of foreign securities out of funds held in the Resident Foreign Currency Account maintained in accordance with the Foreign Exchange Management (Foreign Currency Account) Regulations, 2000; and 6.by way of bonus/rights shares on the foreign securities already held by them.

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered over 2 years ago

Dear Friend, as far as your query is concerned that Can a resident individual in India acquire/sell foreign securities without prior approval of the Reserve Bank? Let me informed that General permission has been granted to persons (individual) resident in India for purchase / acquisition of securities as under: a. Out of funds held in the RFC account; b. As bonus shares on existing holding of foreign currency shares; c. When not permanently resident in India, from the foreign currency resources outside India. General permission is also available to sell the shares so purchased or acquired. A resident Indian can remit, up to the limit prescribed by the Reserve Bank from time to time, per financial year under the Liberalised Remittance Scheme (LRS), for permitted current and capital account transactions including purchase of securities and also setting up/acquisition of JV/WOS overseas with effect from August 5, 2013 (vide Notification No. 263). Resident individuals can acquire/sell foreign securities without prior approval in the following cases: - i. as a gift from a person resident outside India; ii. by way of ESOPs issued by a company incorporated outside India under Cashless Employees Stock Option Scheme which does not involve any remittance from India; iii. by way of ESOPs issued to an employee or a director of Indian office or branch of a foreign company or of a subsidiary in India of a foreign company or of an Indian company irrespective of the percentage of the direct or indirect equity stake in the Indian company; iv. as inheritance from a person whether resident in or outside India; v. by purchase of foreign securities out of funds held in the Resident Foreign Currency Account maintained in accordance with the Foreign Exchange Management (Foreign Currency Account) Regulations, 2000; and vi. by way of bonus/rights shares on the foreign securities already held by them. Hope answer was helpful to you Regards, Arjun Pratap Singh

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