QUERY REGARDING FEMA ACT
B R 123456
(Querist) 06 August 2008
This query is : Resolved
Dear Expert,
Could you please answer this querry:
Ours is a private limited co with Authrised Capital of Rs.1.50 crore and paid up capital of Rs.89 lakhs. Company has four share holders all are from one family and are NRIs since 1997. Company established in 1989. It has 3 directors 2 promoter directors and one salaried Director.
One of the promoter directors established a company in UK (closely held). This company in UK wants to buy shares worth Rs.50 lakhs in our company at par.
1.Can you guide me how to received the money?
2.What are the approvals required from RBI
3.Is it possible for this foreign company to buy more shares in the company at a later stage and become Major share holder.
Your early reply shall be highly appreciated.
Manish Singh
(Expert) 06 August 2008
Firstly tell us the scope and business of ur co?
1. If it falls under Automatic route, then you dont need any permission from any authority but need to inform the RBI only.
2. The money should be in foreign currency and must be routed through any authorised dealer.(authorised banks in this regard.
3.yes it could be possible, but then we will have to look into the prevailing govt policy at that time.
