Economy

RBI revises pricing norms for transfer of shares

The Reserve Bank of India on Tuesday revised the pricing norms for transfer of shares, preference shares and convertible debentures by way of sale from residents to non-residents and vice-versa.

“These directions will become operative with immediate effect,” the RBI stated.

In the case of transfer by resident to non-resident (that is, to foreign national, NRI, FII and incorporated non-resident entity other than erstwhile OCB), the RBI stipulated that the shares of an Indian company are listed on a recognised stock exchange in India, “the price of shares transferred by way of sale shall not be less than the price at which a preferential allotment of shares can be made under the SEBI Guidelines, as applicable, provided that the same is determined for such duration as specified therein, preceding the relevant date, which shall be the date of purchase or sale of shares.” In the case of transfer by non-resident (that is, by incorporated non-resident entity, erstwhile OCB, foreign national, NRI and FII) to a resident, the RBI directed that “the price of shares transferred by way of sale, by non-resident to resident shall not be more than the minimum price at which the transfer of shares can be made from a resident to a non-resident.”



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Printable version | Mar 31, 2020 4:49:56 PM | https://www.thehindu.com/business/Economy/RBI-revises-pricing-norms-for-transfer-of-shares/article16298272.ece

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