Procedure for Share Transfer

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. 

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



 

• 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.