Investment in shares by NRI

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2011 Dear Sir,

I want to allot equity shares of a private limited company to Nri. Please tell me about the procedure of allottemnt.

Thanks
Regards

udit sharma

udit sharma (Expert)
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11 January 2011 Hi..

As per the Master Circular on Foreign Direct Investment(FDI) issued by RBI on 01.07.2010,your company is required to initmate the receipt of Share Application Money from NRI within 30 days from the receipt of funds in prescribed form along with a copy of Foreign Inward Remittance Certificate(FIRC) and a KYC of the NRI issued by the Bank through whom the funds are remitted. This is to be submitted to RBI through Authorised Dealer Category -I bank.

The Shares must be allotted within a period of 180 days from the date of receipt of funds.

Part A of FCGPR is to be submitted to RBI through Authorised Dealer within 30 days from the date of allotment along with all the annexures and Part B is to be submitted annually latest by 31st July every year.

Regards

CS Udit Sharma