Urgent query on transfer of shares
This query is : Resolved
Mahesh Bansal
(Querist)
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
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
(Expert)
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
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
(Querist)
09 November 2010
Thank for reply but we need the solution in the context of Company Law.
udit sharma
(Expert)
09 November 2010
There is no such provision in the Companies Act, 1956!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- EPF ECR NEW FILE SEP 17TH 2026
- Capital Gail Exemption Certificate
- Oct 2025 Invoices
- Import of Software Service.
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Under marginal scheme
- Capitalgain tax purposes for valuation report compulsory
- GST on Renting godown to KFCSC for Storage of Raagi
- GST Audit whether Govt Companies are exempt?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
