Sale of shares to foreign company
Shwetha R (CA ) (377 Points)
24 April 2016Shwetha R (CA ) (377 Points)
24 April 2016
Pratik Shah
(Practising Company Secretary)
(4432 Points)
Replied 25 April 2016
As per my opinion, it is possible.
As per Section 187 of Companies Act, 2013, All investment made in Securities shall be made in its own name. However, this section is applicable only to Company. Hence it is not applicable to foreign company.
Other than this section, there are no section which restrict to hold shares of company as beneficial ownership.
So, if Mr. D wants to hold shares on behalf of C Co, then he can hold it as nominee. Becuase of this, D will become nominee and C Co. will have beneficial ownership of such shares.