What are the guidelines for transfer of existing shares from NRIs to residents and residents to NRIs?
The term transfer is defined under FEMA as including “sale, purchase, acquisition, mortgage, pledge, gift, loan or any other form of transfer of right, possession or lien”. {Section 2 (ze) of FEMA, 1999}. NRIs to residents: The FEMA Regulations give specific permission covering the following forms of transfer i.e. transfer by way of sale and gift. These permissions are discussed below: a. Transfer by way of sale: A non-resident Indian (NRI) or an erstwhile Overseas Corporate Body may transfer by way of sale, the shares/convertible debentures held by him to another NRI only. b. Transfer by way of Gift: A non-resident Indian (NRI) may transfer by way of gift, the shares/convertible debentures held by him to another NRI only. Residents to Non-Residents: • Transfer by way of sale – General Permission under Regulation 10 of Notification No. FEMA 20/2000-RB dated May 3, 2000. A person resident in India may transfer to a person resident outside India any share/convertible debenture of an Indi
Related Questions
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- What are the guidelines for transfer of existing shares from NRIs to residents and residents to NRIs?
