04 September 2015
an indian company wants to transfer its 99% of shares to a foreign company. so in that case whether approval of rbi is required or not?
04 September 2015
an indian company wants to transfer its 99% of shares to a foreign company. so in that case whether approval of rbi is required or not?
Guest
Guest
(Expert)
04 September 2015
I mean does the indian company hold shares in another indian company?
Guest
Guest
(Expert)
04 September 2015
RBI approval is not requried if the transfer price is fixed by a valuation by CA and the INdian company is not in prohibited sectors like agriculture, chit fund, nidhi etc
04 September 2015
ohk thanks. one more thing after the shares are transferred to the foreign company. can the said foreign company lend money to the company in whose shares it has invested/ if yes then any approval required for that
20 July 2025
What is “Swap of Shares” in Foreign Securities? Swap of Shares means exchanging shares of one company with shares of another company. In foreign security context, it is usually: When a company acquires another company by exchanging its own shares with the shares held by the shareholders of the target company. This is often done during mergers, acquisitions, or restructuring. In cross-border transactions, swap can mean exchange of shares between an Indian company and a foreign company, which can have implications for FDI/FEMA and require RBI approval. Why swap of shares matters? The transaction involves transfer/issuance of shares, which is governed under FEMA rules. If foreign securities are involved, RBI approval may be required depending on the deal structure and applicable regulations. It is a method of investment or acquisition without immediate cash flow.