Transfer of shares (undre fema act, 1999)

This query is : Resolved

CS Somnath Kagade, BcomCSLLB (Querist)
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01 August 2011 Query: – Transfer of Share from one share holder-foreign Entity (which is a shareholder of 100% Foreign Holding Company (Incorporated and Registered under Companies Act, 1956)) to another foreign entity (Which is also a group company of Holding Company)

Fact of the Case:-
We 100% Foreign Holding Company which is Incorporated & Registered under the Indian Companies, 1956. There are Two Shareholders in our Company those who are Foreign Entity (Company’s) in a nature nd existed (outside country).
One of the shareholders (Foreign entity- Company) wants to transfer its shares to another foreign entity - Company which is also group company of Main holding Company).
In account of the aforesaid, we would like to know What is the procedure and Compliances to be made to get it done in proper manner under FEMA Act, 1999 and How RBI will come into picture to comply the same.

Please solicite your views

Waiting for your best reply.

Thanks in advance,.

CS Somnath KK
Company Secretary
Pune.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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31 October 2011 No formality under FEMA however there are some serious planning issues under Income Tax Act, 1961

Anuj
+91-9810106211
femaquery@gmail.com