30 July 2011
Can anyone provide me chcklist/procedure for transfer of shares from RI to NRI.
In my case in an Indian company there are two shareholders(son and mother) in a Pvt. Ltd. co,having equal % of shares(total paid up Rs 2 lacs). 100% FDI is allowed in its sector.
One of their relative owns a company in signapore. This company wants to buy 40% shares from the existing shareholders.
I have some queries.
1. The funds have been remitted by Singapore co. As per RBI notification the Authorised Dealer has to send KYC report to RBI.
What is the responsibility of Transferor i.e. Indian shareholders whom funds have been remitted with respect to KYC REPORT.
2. The AOA of the company provides that for trf. of shares the transferor to notify the company and shares shaqll be offered first to existing shareholders.
As there are only two shareholders and both of them are the transferors then who should they intimate.
3. The transferee is a company(NRI) who can execute the share transfer deed and other documents on its behalf.
P.C. Joshi ( Author ) 30 July 2011 Can anyone provide me chcklist/procedure for transfer of shares from RI to NRI.
In my case in an Indian company there are two shareholders(son and mother) in a Pvt. Ltd. co,having equal % of shares(total paid up Rs. 2 lacs). 100% FDI is allowed in its sector.
One of their relative owns a company in signapore. This company wants to buy 40% shares from the existing shareholders.
I have some queries.
1. The funds have been remitted by Singapore co. As per RBI notification the Authorised Dealer has to send KYC report to RBI.
What is the responsibility of Transferor i.e. Indian shareholders whom funds have been remitted with respect to KYC REPORT.
2. The AOA of the company provides that for trf. of shares the transferor to notify the company and shares shaqll be offered first to existing shareholders.
As there are only two shareholders and both of them are the transferors then who should they intimate.
3. The transferee is a company(NRI) who can execute the share transfer deed and other documents on its behalf.
30 July 2011
Hi Mr. Joshi. the resp. of transferor (india Co.)
1. Transferor needs to file form FC TRS with RBI along with FIRC of receipt money and other necessary docs within 60 days of receipt of amount of consideration. It inculdes KYC (know your customer details )also.
2. in private companies before transfering shares to outside memeber the shareholdres needs to offer them to present member first as FRA (first right of acceptance). you can intimate in board minute that both share holders offered shares to each other as FRA but both expressed their unwilingness to buy and thus these are offered to the third party.
3. needs to prepare all necessary minutes and resolutions.
4. needs to ionform RBI about receipt of amount within 30 days in an intimation form
rest i will suggest you to read Master circular of FDI policy issued by RBI.
if you want forms FC TRS or intimation copy kyc format you can tell me your email id will try to mail u as much i can incudling FDI policy master circular.
I told all these on basis of my experience of handling teh similar case with my team.
05 August 2011
Dear Sir, As your point relating to procedure have already been discussed Please see your point wise answer w.r.t to your queries (1) The responsibility is of the Indian shareholders as well. (2) AOA is taken from some JV company. nothing is required to be done here (3) Kindly get the Power of attoney in favour of director from the company in the form of resolution. That shall be suffieceint and director shall be able to sign all the required documents. Hope this is fine. Please be free to write further for any further clarification. Regards, CA. Sudha G. Bhushan Sudhag99@gmail.com
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