Yes, certain stocks are restricted for NRI-PIS accounts based on foreign investment limits monitored by the RBI.
Where to find restricted stock lists
You can find the list of restricted stocks for NRI-PIS accounts by visiting the following websites:
- RBI: rbi.org.in/scripts/BS_FiiUSer.aspx
- NSDL: fpi.nsdl.co.in/web/Reports/ForeignInvestmentLimitMonitoringListing
- CDSL: cdslindia.com/publications/FIMonitoring
The Reserve Bank of India (RBI) monitors your investment position as an NRI in listed Indian companies daily through designated banks. When the total holdings of NRIs reach 2% below the set upper limit, RBI issues a notice (caution list) to the designated banks. Any further purchase in that particular Indian company will require prior approval from RBI. The company may increase the upper limit with the approval of the board and the general body after passing a special resolution.
If your holdings as NRIs reach the overall ceiling limit, RBI places the company on the ban list, after which you cannot purchase the company's shares under the portfolio investment scheme. NSDL and CDSL also publish the Red flag list, Caution list, Breach List and Foreign Investment Limits.
If you hold a Non-PIS account, you have no such trading restrictions. Learn the difference between a PIS account and a Non-PIS account in What is the difference between a PIS and a NON-PIS account?