Allotment of shares at premium to foreigner

This query is : Resolved

P.C. Joshi (Querist)
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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

Vishal D Shah

Vishal D Shah (Expert)
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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