Transfer of share at nil consideration

Dear Members, One of the shareholder holding majority shares of a Private company wish to transfer his shares to a non-relative without any consideration or as a gift. Is it prohibited or restricted under any law? Is there any procedural change in share transfer process on account of nil consideration? I understand that such transfer involving inadequate consideration will be taxable in hands of Transferee/Buyer. Fair market value of shares will be taxable in hands of Transferee/Buyer. Kindly share your views.