Dear All,
An Indian holding company (Software) has 4 wholly owned subsidiaries namely B, C, D and E in various countries. Now holding company decide to transfer its entire shares of B, C and D to “E” with consideration of getting new shares from ‘E’ on share swap basis.
Whether above transaction is treated as Disinvestment of Holding Company?
Whether the Merchant Banker need to appoint for valuation of shares for above transaction. (As per RBI regulation)?
Whether FIPB approval should get in this regard?
Any other laws applicable to this transaction?
Please enlighten on the above.
CAclubindia
