09 April 2008
A company in india was initially incorporated with 2 indian directors. The Company is engaged in Travel related services which is coming under automatic route for FDI. My query is that now , the company proposes to issue 95% of its shares to a foreign company. i believe that prior approval is not necessary as the FDI is covered under automatic route. What is the procedure to be adopted with respect to RBI for allotment of shares. What is the form/application to be filed with RBI for allotment of shares to a foreign company??
CAclubindia
