Transfer of shares from non resident to non resident

you have to intimate to RBI simple letter with following documents

1) agreement of transfer 2) transfer deed with stampt duty (0.25%)

3) valuation from Chartered accountant for transfer as per CCI guidelines

Notification No. F.E.R.A.206 /99-RB dated 31st July 1999

General Permission to Non Residents for Acquisition/
Purchase of shares from other Non-Residents

In exercise of powers conferred by clause (b) of sub-section (1) of Section 29 and sub-section 4 of Section 19 of the Foreign Exchange Regulation Act, 1973 (46 of 1973), the Reserve Bank of India hereby permits

provided that the rights of the transferee/purchaser in respect of shares so acquired, shall be subject to same restrictions and conditions as were applicable to the transferor/seller of the shares.

(b) Companies incorporated in India and/or a depository defined in clause (2) of sub-section 1 of Section 2 of Depository Act, 1996 to enter in their register or books in which securities are registered or inscribed an address outside India of a holder of any securities consequent upon acquisition of such securities by non-resident under this notification

please check atatch file

Thanks Mr. Valji, It was really helpful.

Dear Valji

CCI guidelined for valuation of shares is no longer applicable. It has to be DCF method for valuation of shares.

Hitesh

hi

i am not aware for this ,thanks for information

whether any circular for this

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. Otherwise, which AD bank will certify the FC TRS ?

Dipjyoti is correct, no action is required from Indian Company as regards the FEMA , apart from valuation of shares as per DCF.

However there shall be liabillity of Company purchasing shares to deduct TDS on the amount of Capital Gains. As both the Non Resident Companies are related , geat care needs to be taken before fixing the value of shares being transferred.

Anuj

+91-9810106211

femaquery @ gmail.com

Dear Hitesh

Please state if a pvt ltd co has issued shares to its holding foreign co based on Profit Earning Capacity Value ( PECV) Method

Is this ok if the shares are issued at higher price than the valued price as per DCF method even if the shares are issued based on Profit Earning Capacity Value ( PECV) Method .

regards

VK

Hi everyone,

Please suggest if there is any change in the provisions

please brief what i have to do in the following case:

- shares of indian pvt ltd companies held by a NRI Corporate

- that NRI COrporate is transferring its shares to another NRI corporate

please tell  me the FEMA/RBI and proceedure for the Valuation of shares

Thanks in advance

Regards:

Piyush.

ca.goplanipiyush @ gmail.com

Our Company is Pvt. Ltd. Company, one of the NRI is holding equity shares in our company. Now this NRI is transferring his shares to his brother who is also an NRI.

What is the procedure to be follow? Please help me.

Folow the regular Company law procedure for transfer of shares.

Nothing needs to be done on RBI front if there is no change in stand of REPATRIATION of SHARE PROCEEDS by NRI.

Anuj

femaquery @ gmail.com

A foreign corporate body which holds 99% shares of our company is proposing to sell all the shares to another foreign body corporate

kindly give directions towards income tax on such transfer & procedures as per law ?

Dear Anuj Sir,

I have one query related to downstream investment.

Who will report to FIPB about downstream investment i.e. investing company or investee company?

Please sir help me.