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N. Patidar (Querist)
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04 December 2011 Some of Non Residnet person has aplied for share capital in ABC Ltd. as under:-
Mr. X on 17.10.2008, Rs. 67,50,000/- INR
Mr Y on 19.12.2008 Rs. 52,00,000/-

Mr Z on 19.12.2008 Rs. 51,00,000/-

All the money came directly from abroad through Demand draft /RTGS favouring the above ABC Pvt. Ltd.. Copy of Bank request Letter and Application of depositor requesting for allotement of Preferential share is enclsoed.

ABC Pvt. Ltd. has kept the above amount as unsecured loans in his books. All the NRI ( X,Y, AND Z) is ready to give in writing that they will not repartiate the amount and this amount will remain in India forever. Copy of their pass port and other documents through which fund is transferred is enclsoed for your kind perusal.

Further M/s. ABC Pvt. Ltd. is registered with ROC Jaipur with main object of Cement and RMC manufacturing and trading but due to some reasons or other ABC Pvt. Ltd. could not commence any business and amount received from NRI X, Y and Z is deposited with SRM Pvt. Ltd ( A company engaged in Manufacturing and marketing of Ready Mix concrete) . as share application money and SRM Pvt. Ltd. has allotted the share capital to ABC Pvt. Ltd. at a premium. Now ABC Pvt. Ltd. is planning to increase his share capital and then allot the shares of Rs. 10/- to X, Y, vand Z at a premium of Rs. 190/-in the month of Nov. or Dec., 2011.

What formalities is required to be completed

Please advise

rvsekar2000

rvsekar2000 (Expert)
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24 December 2011 Hello,

There is no restriction for a private limited company to collect premium as per section 78 of the companies Act.

Since , the NRIs have given undertaking that the shares are under non-repatriation benefit, there is no need to inform RBI for the allotment of shares to NRIs by the company.

R.V.Seckar
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