transfer of shares to NRI

CS Ekta (Company Secretary) (309 Points)

13 January 2010  

 Dear Friends 

The shares of an unlisted company were transferred from a resident to a NRI. The address of transferee provided in the transfer form is of India. Even the remittance of sale consideration is made out of the normal bank account of the transferee maintained in India.


In a nutshell all the formalities regarding transfer is completed as needs to be done in case of transfer between two resident individuals.


What can be consequences in this case as the Company has already record the transfer in its books?

Secondly please confirm that whether the pricing guideline is also applicable in case of transfer of shares by resident to NRI?