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Bhojraj Baral (Advocate)     12 January 2009

Procedure for Share Transfer

A Director in a private ltd company registered in India, wants to transfer his shares to a company which is a foreign company. In such case, what will be the procedures with regards to ROC to be followed & also will it attaract any formalities from Reserve Bank of India.


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 3 Replies

BHANU RASPUTRA (ADVOCATE & SOLICITOR divyatta.r@gmail.com)     14 January 2009

meaning  u have sold share to foreign company, then forign co. is purchaser . it  is purchaser duty to comply with procedure .  u have to  inform reserve  bank  for money to be recived in india.


further ,it depnd on , through which STOCK EXCHANGE u have sold? if not , then as per above procedure. better to consult foreign stock boker. 

J Manivannan (Advocate & Consultant)     02 February 2009

 



  1.  Find the buyer is eligible to acquire shares under Forign Direct Investment (FDI) Policy.

  2. Excute the share purchase agreement by buyer and seller.

  3. Excute Share Transfers Form (7B) with appropriate stamp duty by buyer and seller.

  4.  Filed Form FC-TRS to RBI thourgh Authorized Dealer. The following documents are  mandatory accompained with FC-TRS, as

  5.  




  • The shareholding pattern of the investee company after the acquisition of shares by forign nation or entity

  • Certificate indicating fair value of shares from Charted Accountant 

  • Certificate by the Autorized Dealer Branch

  • Inflow- Transfer from resident to NRI and Forigner.


FC-TRS form available at rbi portal.


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