What happens if an NRI purchases a stock in excess of the prescribed limit?
An NRI will have to immediately off load such portion of the holding, which is in excess of the prescribed limit. NOTE: If a loss is incurred as a consequence of such a square-up, it will have to be borne by the client. However, if there is a profit, it will not be credited to his account. Thus it is recommended to verify the RBI notifications before placing orders. http://www.rbi.org.in/personalised/personalisation.asp?filename=fiilist/index.
Related Questions
- How does an NRI correct his/her position if the purchased shares / convertible debentures are in excess of the prescribed limit, if any?
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- What happens if an NRI purchases a stock in excess of the prescribed limit?
