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What are the guidelines for transfer of existing shares from non-residents to residents or residents to non-residents?

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What are the guidelines for transfer of existing shares from non-residents to residents or residents to non-residents?
posted Aug 3, 2017 by Vijay

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The term ‘transfer’ is defined under FEMA, 1999 as "sale, purchase, acquisition, mortgage, pledge, gift, loan or any other form of transfer of right, possession or lien” {Section 2 (ze) of FEMA, 1999}.
The following share transfers are allowed without the prior approval of the Reserve Bank of India subject to the conditions laid down in FEMA 20:

a. Transfer by way of sale or gift between a person resident outside India (not being a NRI or an OCB) and any person resident outside India;

b. Prior Government approval shall be obtained for any transfer in case the company is engaged in a sector which requires Government approval.
c. Transfer of shares by way of sale or gift by a NRI to any NRI;
d. Prior Government approval shall be obtained for any transfer in case the company is engaged in a sector which requires Government approval
e. Transfer by way of gift by a person resident outside India to a resident;
f. Transfer by way of sale on a recognized stock exchange by a person resident outside India;
g. Transfer by way of sale or gift by a resident to a person outside India subject to conditions prescribed in Regulation 10 of FEMA 20;

answer Aug 8, 2017 by Shubham Rajput
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