Urgent query on transfer of shares

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Mahesh Bansal (Querist)
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09 November 2010 Dear All,

Under what conditions a 100% subsidiary (pvt ltd company) of a Foreign company would require lenders/creditors prior approval for change in its shareholding pattern?

Example:
XYZ Pte Ltd, a foreign company holds 100% share of ABC Pvt Ltd, an Indian company. Now it wants to transfer some of its shareholding in ABC Pvt Ltd. Under what circumstances it requires an approval from the lenders of ABC Pvt Ltd?

Pls provide the relevent section.

Rgds
Mahesh

udit sharma

udit sharma (Expert)
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09 November 2010 Hi.....

Suppose XYZ Pte Ltd. holding 100% shares of ABC Pvt. Ltd. intends to transfer 40% of its shareholding to PQR Ltd., a Company incorporated in India. Now, in case of transfer of shares from Resident to Non - Resident/Non - Resident to Resident, Form FC-TRS in quadruplicate is tobe filed with the RBI within 60 days of remittance/receipt of funds, as the case may be through the Authorised Dealer of Category I (AD-1). This Form FC-TRS will always be signed by the Non-Resident Buyer/Seller as the case may be and shall be accompanied by the documents mentioned on the first page of the Form.

You can download Form FC-TRS from RBI Website.

Best Regards

Udit S. Sharma

Mahesh Bansal

Mahesh Bansal (Querist)
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09 November 2010 Thank for reply but we need the solution in the context of Company Law.

udit sharma

udit sharma (Expert)
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09 November 2010 There is no such provision in the Companies Act, 1956!

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