The Reserve Bank of India (RBI) is understood to be relaxing norms for private transfer of shares between resident and non-resident Indians (NRIs). | |
| It plans to make such transfers 'automatic', meaning they would not require its permission. It will be left to the discretion of custodian banks to allow such trasfers. |
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| The government recently relaxed norms foreign investments whereby transfer of shares from residents to NRIs, including transfer of subscribers' shares to NRIs, were brought under the general permission route. |
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| Besides, such transfers would be subject to compliance with the provisions of the Securities and Exchange Board of India relating to Substantial Acquisition of Shares and Takeover Regulation 1997. |
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| Under the new guidelines which are likely to be issued soon, such transfers will be done through the banks which will be deciding authority to permit. |
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| The discretion of banks will be restricted to the domain of transactions and dealing already notified by RBI in its circular to the authorised dealers. |
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| However, transfer of shares under portfolio investment will not be guided under these norms and will continue to be under the RBI general permission route. |
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