Arm's length pricing for overseas equity transfers ensures AD banks verify valuation and enforce pricing and documentation. Pricing and transfers of overseas equity by persons resident in India must follow arm's length pricing with AD banks ensuring valuation under internationally accepted methodologies and a board approved policy. Transfers and liquidations require compliance with Overseas Investment limits, documentation and reporting; mergers, amalgamations, demergers, buybacks or liquidation require competent authority approval. For ODI disinvestment, transferors must have no outstanding receivable dues and generally must have held the investment for at least one year, subject to narrow intra group exceptions. Transfers are disallowed if the original investment was not permitted.