Transfer of shares between non residents

I feel there is no compulsion to intimate RBI about transfer of shares in a Indian company from NR to another NR.The simple logic is there is no money coming into India from overseas through banking channels.

However there shall be liabillity of Foreign National purchasing shares to deduct TDS on the amount of Capital Gains. Great care needs to be taken before fixing the value of shares being transferred as provisions of sec. 56(vii) may kick in.

Anuj

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