What is the procedure of Sale of shares to non-resident. Wht is procedure under FEMA and with RBI.
3 Replies
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 19 February 2010
I assume it is further issue of shares by a company to a non resident. If i correctly remember the amount, the shares to be alloted is less than USD 30,00,000 then no persmission is required to be taken. If the amount is exceeding that than persmission should be taken from the FIPB (Foreign Investment Promotion Board) for issuing shares
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 19 February 2010
Also there are restrictive convenents to the fact that in some industries investment by NRI is not permissible.
Sunil Gupta
(Service)
(181 Points)
Replied 19 February 2010
Sir, depends on the company i.e. sector (there are sectoral cap) it belongs to and also what do u mean by non-resident, is it non-resident indian or POI etc.
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