Can someone give a list of those stocks that are restricted for NRI clients
There are certain restrictions for NRI/OCI/PIOs trading in the Indian market through the PIS scheme. The ceiling limit of overall investment for NRI/OCI/PIO is 10% of the paid-up capital of any Indian company.
According to Schedule 3 of FEMA Act 1999, NRI Investors cannot purchase Banned and Caution Shares. If an NRI customer wants to purchase those shares that are in the caution list he needs to take prior permission from RBI through an authorised dealer which in this case is the bank.
Here’s the RBI link for more information: http://www.rbi.org.in/scripts/BS_FiiUSer.aspx
RBI has investment limits in stocks and when the limits are breached investing is not allowed in those stocks.
You can refer here for the list of banned and caution scrips: https://goo.gl/q58zSF
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