Allotment of shares at premium to foreigner
This query is : Resolved
P.C. Joshi
(Querist)
20 January 2012
Dear Friends,
A Pvt. Ltd. Company has at present to shareholders both are Indian.
The company wants allot fresh shares 10000 equity shares of 10 each to Indian promoters at par and at a premium of Rs240/- to a foreign party. Can the company allot shares in this manner.
what are the FEMA compliances w .r.t. allotment of shares to foreigner.
Pl respond ASAP
Thanks
P.C. Joshi
A Pvt. Ltd. Company has at present to shareholders both are Indian.
The company wants allot fresh shares 10000 equity shares of 10 each to Indian promoters at par and at a premium of Rs240/- to a foreign party. Can the company allot shares in this manner.
what are the FEMA compliances w .r.t. allotment of shares to foreigner.
Pl respond ASAP
Thanks
P.C. Joshi
Vishal D Shah
(Expert)
21 January 2012
It is possible to allot shares to Indian parties & foreign parties at different price.
Valuation in case of foreign allotment needs to be done by CA or merchant banker by adopting DCF Valuation method.
regards.. cavishalshah@gmail.com
Valuation in case of foreign allotment needs to be done by CA or merchant banker by adopting DCF Valuation method.
regards.. cavishalshah@gmail.com
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