Transfer of Shares to foreigners

Dear Members,



"A" is a private company, having paid up capital of1,00,000. There are two shareholders "X" & "Y" and the same people are directors of the said Private Company. Currently these directors are planning to transfer their shares to 3 foreigners ('D' 'E' & 'F') 


Kindly provide me the procedure to bring the same into effect. 

 

Further this query relates FEMA, but I could not find separate Forum for FEMA, therefore I am posting the same in Corporate Law Forum, pls guide me in which forum i should raise questions relating to FEMA.

-- 

Thanks and Regards
Vinay B L
Replies (1)

Vinay

You have to check if prior approval of RBI or DIPP is needed or not. This will depend on the type of business the company does. If the automatic route is applicable then Form FC TRS has to be filed with the AD bank who will in turn report to FED of RBI.

Please read the latest FDI policy issued by RBI on 1st April 2011.

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