I have an NRO Non PIS Account. While investing / rebalancing , I noticedthat the buy order for a particular stock failed with the status message –“NRIs cannot buy stock xyz as the stock is in the restricted list” How toresolve this issue ?

2 min read

Answer
The Reserve Bank of India monitors and sets a ceiling limit on how much
NRIs can invest into a particular listed company in India. Once the
shareholding by NRI’s reaches this limit, the Reserve Bank places the
company in ban list further to which no NRI’s will be able to purchase any
shares of that particular company. You may read more about this here
Now, let us see how you can resolve this if your order did not go through
due to this reason.

Step 1 : Click “Manage

Let us take the case of the following Smallcase with 4 constituents with
each constituent having a maximum allocation of 25%. Let us assume
“Centrum Capital Ltd” was one of those stocks in which NRI’s may not be
able to invest into and subsequently your order did not go through.

Step 3 – We will replace “Centrum Capital Ltd” with a CASH component in
the form of “LIQUIDBEES” and ensure we allocate the same weightage as
“Centrum Capital Ltd” to “LIQUIDBEES” as well which is 25.2%.
On the search tab, type “LIQUIDBEES” & add it to the portfolio.

Step 4 – Double click the quantity tab on that stock to make it zero
& add quantity to LIQUIDBEES till it’s weightage approximately
matches that of the exiting stock Centrum Capital (25.61%)

Step 5 – Check the changes made and click “Confirm Changes” to
complete the transaction. You may again replace LIQUIDBEES with an
eligible stock in the same manner when the banned stock exits the
portfolio during a rebalance.

Please send an email to
support@weekendinvesting.com if you have any further questions

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September 21, 2023 by Weekend Investing

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    I have an NRO Non PIS Account. While investing / rebalancing , I noticedthat the buy order for a particular stock failed with the status message -“NRIs cannot buy stock xyz as the stock is in the restricted list” How toresolve this issue ?