It is possible, before transfer the transferee will take Central Government or RBI approval and send the approval letter with other documents to company for register the shares in new name in Register of Members of the Company.
Transfer of shares and convertible debentures, by way of Sale, between a person resident outside India:
Regulation 9 of Foreign Exchange Management (Transfer or Issue of Security by Persons Resident outside India) Regulations, 2000 deal with such transfer. As per this, a person resident outside India holding the shares or debentures of an Indian company in accordance with these Regulations, may transfer the shares or debentures so held by him, in compliance with the conditions specified in these regulations. The following conditions are hereunder:
(a) A person resident outside India (other than NRI and OCB) intended to transfer by way of sale, shares or convertible debentures held by him to any person resident outside India make an application to .Central Government for prior approval. (b) Prior approval of Central Government is required if (i) He has previous venture or tie up in India through investment in shares or debentures (ii) Technical Collaboration (iii) Trade Mark Agreement (iv) Investment in same field or allied field in which the Indian company is engaged. (c) In other case no need to take Prior approval of Central Government.
(d) A non resident of India (NRI) or an Overseas Corporate Body (OCB) may transfer, by way of sale, shares or convertible debentures held by him to any person resident outside India without Government approval and will be covered under automatic route.
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