Fema
Dhruv
(Querist) 08 February 2012
This query is : Resolved
Madam /Dear Sir,
As per the Master Circular on Foreign Investment in India (MasterCircular No. 15/2011-12, dtd 1-7-2011) issued by RBI, prior approval of the RBI is required for Transfer of Shares from NRI to NR [Para 8.B.II. (iv)] How can this approval be obtained? Is there a specific form in which an application is to be made or a letter is to be written?
Ankur
(Expert) 20 February 2012
General permission has been granted to non
residents / NRIs for acquisition of shares by way of transfer in the following
manner:
a. Non Resident to Non-Resident (Sale / Gift): A person resident
outside India (other than NRI and OCB) may transfer by way of sale or
gift, the shares or convertible debentures to any person resident outside
India (including NRIs).
b. NRI to NRI (Sale / Gift): NRIs may transfer by way of sale or gift the
shares or convertible debentures held by them to another NRI.
c. Non Resident to Resident
a. Gift: A person resident outside India can transfer any security to
a person resident in India by way of gift.
