Brokers allowed to buy shares for NRIs
Mumbai: The Reserve Bank of India (RBI) has ruled that a registered broker in India will be allowed to purchase shares of an Indian company on behalf of a person residing abroad for the purpose of converting the shares into ADRs/GDRs.

The central bank has also come out with its norms on listing of block shareholding on foreign stock exchanges by allowing Indian companies to sponsor ADR or GDR issues against shares held by its shareholders. It has also approved the hike in foreign institutional investor limit to 49 per cent.

The RBI has said shares purchased by a broker on behalf of a person residing abroad must be done on a recognised stock exchange. The Indian company, whose shares are being purchased should have issued ADRs/GDRs.
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