Private ltd. company shares

 

Hello,

I have follwoing questions:

 

1)       Once I get the Physical shares via Share Transfer Form, Can I than do an off market transaction to unrelated party and transfer my shares of public limited company to the new person?  

2)      If I transfer my shares (as (1)) above for a price, would it be legal to sell shares offline for a price that is above or below the price on exchanges without going through broker?

3)       Which regulatory bodies do I need to update (if any) for such off market transactions that I enter into for a financial gain?

4)      What restriction applies for secondary market trading if I want to invest in PRIVATE LIMITED COMPANIES (Not publicly listed or not public limited with RoC) which are backed by PRIVATE VENTURE FUNDS?

5)      Do I have to check if the facilitator e.g., Mumbai Angels or similar forum who facilitates such transactions (as (4)) is registered as a broker or not with SEBI? 

 

Kindly answer my doubts. Answer even if you know any one of the question answer.

 

Thanks,

Bhaumik


 

 

Replies (1)

1.  You can transfer shares of pvt or public company offline to any person. No such restriction in any act.

     Just submit the transfer deed to the company so register that transfer of shares.

2.  You can sell shares at any price. But if you sell shares at any price below the market price or book price then look for implication of sec 56(vii) of Income tax act.

 

 

 

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