Dear Sir,
My client who is NRI has invested X Amount back in year 2015 into equity shares of Indian PVT Ltd. Remittance were made from overseas accounts into Individual NRE account, transferred to NRO and then invested into Equity shares. My client understanding is that original investment were classified as a non-repatriable basis intstead of Repatriable basis. Since this company is in active trading business of tangible comodities, and thus may be eligible to receive investments on repatriable basis.
Question 1: I would like to know, is there any FEMA (RBI) provision for reclassifying non repatriable transaction to repatriable transaction.
Question 2: Is there any other provision which may be require attention if said NRI would like to gift his equity share to his SON who is also NRI. As per my reading of FEMA, general permission is granted for the same. please advise.
Thank you in advance.
Narendra
