Querry on transfer of shares

CHANDAN KUMAR SINGH (COMPANY SECRETARY ) (49 Points)

10 October 2011  

Dear Friends,

A Non-resident Company which is a shareholder in an Indian Company transfers its shares to a Indian Trust by way of gift with nil consideration. What are the compliances under Companies Act, 1956 & FEMA for reporting transfer of shares.

Please reply urgently.

What I understand is that under Co.s Act, 1956, the Non-Resident Company should enter into a transfer deed with the Trust to transfer the shares and also get the Indian Co. record the transfer of sharesby paying stamp duty at the rate of 0.25% of the value of shares.

Under FEMA, Form FRC-TRS should be filed with the AD Bank. But, my querry is since the consideration is Nil, WHAT AMOUNT OF CONSIDERATION SHOULD BE MENTIONED.

KINDLY PROVIDE YOUR VALAUBLE SUGGESTIONS.

Thanks