Dear All,
I am posting a query here for the first time and hope to receive help from you all!
X and Y are two group entities outside India in Maurtius. Both X and Y entities are part of Zgroup. Can Internal share transfer at cost between these two group entities outside India have to be reported to RBI?
The transfer is at cost and no monies will change hands. There is no new infusion of funds into the company or any money coming into India. This is completely an offshore non-resident transaction in Mauritius and the company had to just provide consent to transfer the shares from one group entity to another under the permitted transfers clause of the shareholders agreement.
Does this transaction requires repoting to RBI in India if the same is done via a Bank in India? Would this transaction of share transfer require opening of Custodial account? Need your help and also if you can substantiate the answer with the supporting regulations.
CAclubindia
