Pratibha (Company Secretary) (32 Points)
26 August 2010Hi Friends,
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 26 August 2010
Hi
first check it out the fdi limit for the sector for which you want to transfer shares. Check whether comes under automatic route or FIPB approval. If comes under automatic route just give intimation to RBI office in prescribed form. In case of FIPB approval apply for that and after geting approval transfer the shares and also intimate to RBI.
Kumar
(Legal Consultant)
(358 Points)
Replied 26 August 2010
Swapping of shares requires in principle approval from FIPB.
vivek
(CS)
(751 Points)
Replied 26 August 2010
RBI/2010-11/ 5 Master Circular No.05/2010-11
Section B - Direct Investment Outside India
B.1 Automatic Route
e) In cases of investment by way of swap of shares, irrespective of the amount, valuation of the shares will have to be made by a Category I Merchant Banker registered with SEBI or an Investment Banker outside India registered with the appropriate regulatory authority in the host country. Approval of the Foreign Investment Promotion Board (FIPB) will also be a prerequisite for investment by swap of shares.
Regards,
Ajay Mishra
(Company Secretary)
(74337 Points)
Replied 26 August 2010
Dear Friend
Please find enclosed herewith Master Circular on FDI issued by RBI on July 01, 2010. Hope this master circular will resolve your problems.
Regards
CS Ajay Mishra
CAclubindia
