Share transfer by foreign share holder

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 December 2010 Dear Sir
Can Anyone Please help me with the situation

"A is the non resident shareholder of an indian company he transfer his share to another person namely B who is also a non resident" the company is not a listed company......

Questions: 1)what is the requirements that should be complied with?
2)whether indian transfer deed is to be executed?
3) what are various communication is to be made to the various authorities i.g. ROC, SEBI?
4) what are the steps for such transfer and is there is any provision india companies law?
5) what will be the various issues if B is the Resident?

udit sharma

udit sharma (Expert)
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10 December 2010 1)Yes a duly stamped transfer deed has to be executed.....

2) In my opinion,since the Company is not a Listed Company, no communication is to be made to ROC, SEBI etc.

3) In case duly executed and stamped transfer deed is submitted to the Company, the Company shall register the transfer and return the share certificates to the Transferee within 2 months from the date of receipt of duly executed and stamped Transfer Deed.

In case of transfer of shares from resident to non-resident or vice versa, Form FC-TRS has to be filed in quadruplicate by the Resident Buyer/Seller as the case may through the Authorised Dealer with the RBI within 60 days from the date of receipt/remittance of funds as the case may be. The Form is to be signed by the Non-Resident Buyer/Seller and the Onus to submit the Form is on the Resident Buyer/Seller.

God Bless

Udit Sharma