What should be done after SIA / FIPB permission for transfer of existing shares from residents to non-residents has been obtained?

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What should be done after SIA / FIPB permission for transfer of existing shares from residents to non-residents has been obtained?

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Ans. Either the transferor (resident) or the transferee (non-resident) can make an application for RBI’s permission for the transfer. The applicant should however submit a copy of the sale contract or consent from the other party. The applicant should also submit a copy of the SIA / FIPB permission for the transfer. A Chartered Accountant’s certificate in respect of the valuation of shares may also be submitted. RBI grants the approval if the transfer takes place at a price above the “floor” provided by guidelines issued by the erstwhile Controller of Capital Issues, if the shares are unlisted. For listed shares, the average of market price of shares six months before the date of application to SIA / FIPB (or average price over the past two weeks, if that is higher), is taken as “floor price”. RBI issues an “in-principle” approval for the transfer. After obtaining the “in principle” approval the applicant has to apply for final permission together with original Foreign Inward Remittanc

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