Transfer of equity Instruments by NRI or OCI

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....ts of an Indian company or units on repatriation basis may transfer the same by way of sale or gift to any person resident outside India: Provided that prior Government approval shall be obtained for any transfer in case the company is engaged in a sector which requires Government approval: Provided further that the transfer made to an individual person resident outside India which results in transfer of ownership or control of the listed Indian company to entities or citizens of a country which shares land border with India or where the beneficial owner of such investment is a citizen of any such country, shall require the prior approval of the Government. Explanation:- For the purposes of this rule, - (a) "ownership of a....

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.... the same to a person resident outside India by way of gift with the prior approval of the Reserve Bank of India, in the manner prescribed, and subject to the following conditions, namely :- (i) the donee is eligible to hold such a security under relevant Schedules of these rules; (ii) the gift does not exceed five percent of the paid up capital of the Indian company or each mutual fund scheme; Explanation: The five percent shall be on cumulative basis by a single person to another single person. (iii) the applicable sectoral cap in the Indian company is not breached; (iv) the donor and the donee shall be "relatives" within the meaning in clause (77) of section 2 of the Companies Act, 2013; ....

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.... rules may transfer such equity instruments or units so held by him in compliance with the conditions, if any, prescribed in the Schedules of these rules and subject to the terms and conditions prescribed hereunder" 3. Substituted vide Notification No. S.O. 3030(E) dated 12-06-2026 w.e.f. 12-06-2026 before it was read as, "(1) A NRI or an OCI holding equity instruments of an Indian company or units on repatriation basis may transfer the same by way of sale or gift to any person resident outside India : Provided that,- (i) prior Government approval shall be obtained for any transfer in case the company is engaged in a sector which requires Government approval; (ii) where the acquisition of ....