top button
Flag Notify
    Connect to us
      Facebook Login
      Site Registration Why to Join

Facebook Login
Site Registration
Print Preview

What are the guidelines for transfer of existing shares from non-residents to residents or residents to non-residents?

+1 vote
3 views
posted Aug 3 by Vijay

Share this question
Facebook Share Button Twitter Share Button Google+ Share Button LinkedIn Share Button Multiple Social Share Button

1 Answer

0 votes

The term ‘transfer’ is defined under FEMA, 1999 as "sale, purchase, acquisition, mortgage, pledge, gift, loan or any other form of transfer of right, possession or lien” {Section 2 (ze) of FEMA, 1999}.
The following share transfers are allowed without the prior approval of the Reserve Bank of India subject to the conditions laid down in FEMA 20:

a. Transfer by way of sale or gift between a person resident outside India (not being a NRI or an OCB) and any person resident outside India;

b. Prior Government approval shall be obtained for any transfer in case the company is engaged in a sector which requires Government approval.
c. Transfer of shares by way of sale or gift by a NRI to any NRI;
d. Prior Government approval shall be obtained for any transfer in case the company is engaged in a sector which requires Government approval
e. Transfer by way of gift by a person resident outside India to a resident;
f. Transfer by way of sale on a recognized stock exchange by a person resident outside India;
g. Transfer by way of sale or gift by a resident to a person outside India subject to conditions prescribed in Regulation 10 of FEMA 20;

answer Aug 8 by Shubham Rajput
Contact Us
+91 9880187415
sales@queryhome.net
support@queryhome.net
#280, 3rd floor, 5th Main
6th Sector, HSR Layout
Bangalore-560102
Karnataka INDIA.
QUERY HOME
...