Transfer of Shares from RI to NRI

Guest (Querist) 22 November 2008 This query is : Resolved
If an Indian entity transfers shares to Foreign Company, is it mandatory for the company to ensure that FC-TRS is filed b4 approving the Transfer at Board Meeting or the Company is not concerned with that? Tz in Adv.

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Guest (Expert) 26 November 2008
On a review, and with a view to make the environment in India more attractive to foreign investors and also to simplify procedures, Government has decided to dispense with the requirement of obtaining prior approval of the Government (FIPB) in respect of transfer of shares/convertible debentures, by way of sale, from residents to non-residents (including transfer of subscriber's shares) of an Indian company in sectors other than financial service sector (i.e. Banks, NBFCs and Insurance) provided the following conditions are complied with:

In view of this No prior approval is needed from RBI.

Guest (Querist) 26 November 2008
What i wanted to know is whether a company needs to satisfy that FC TRS is filed, b4 approving this transfer at the Board Meeting?

Manish Singh (Expert) 27 November 2008
you need to authorise the transaction first that means you need to have the Borad resolution to authorise the transaction. But this resolution is not needed to be filed with the Authorised dealer since they its a company's internal matter but if they ask for it, you can provide them with the same.

Guest (Querist) 25 June 2009
Tq

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