A company X is having a JV with a state government agency. There are many share holders. Among them, there is a foreign investor Z who is a consortium partner in this JV. It holds Y number of shares, valuing is Rs.3Crores
X company has submitted FCGPR to RBI through AD
JV Company has been making loss and so, X company plans to merge the JV company with some other resident company. Now, Z company’s Y number of shares has to be transferred either to the JV company itself or to X company
Z company’s Y no of shares have to be transferred to the JV company or to X company for a value of USD 1/-
Our queries:
-is it possible to do this transfer and subsequent merger?
-Is the value of USD 1/- acceptable to RBI?
-What are the process/procedure/forms to be filed to RBI, if any?
-what are the compliances to be followed to effect this legally?
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