Wednesday, July 09, 2008

FEMA_Practical Problems_9

An NRI sells shares of an unlisted Indian Pvt. Company, these shares were originally acquired by him when he was a resident. The sales proceeds are credited to his NRO account. Money is not taken out of India. Does the transaction attracts provisions of transfer of shares by NR to R and related pricing and reporting requirements ? Is there any specific exemption for sale by NRI (on non-repatriation basis) for shares which were acquired as a resident ?

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