1. Valuation of shares: – Price of share shall be decided on the basis of valuation of Shares by a Chartered Accountant or/a SEBI registered Merchant Banker.
2. Sale consideration (net of taxes) must be remitted outside India through an authorized dealer (AD) bank.
3. Transfer of shares must be reported in Form FC-TRS to RBI through an AD bank within 60 days of receipt/remittance of sale consideration. The onus of submission of the said Form FC-TRS is on the transferor / transferee resident in India.
4. Documents are required to be submitted to the AD bank along with the Form FC-TRS:
5. Post submitting form on FIRMS portal, AD bank scrutinize each and every application and it may send the form for re-submission if any documents/information is incorrect or missing.
6. Sanction letter/Certificate issued by AD Bank: AD Bank provides you with a sanction letter or certificate if all the documents and information are satisfactory to them. This is a documentary evidence which states that FDI compliances are duly taken care off by the applicant.
1. Execution of securities transfer form (“STF”) i.e. SH-4 will need to be executed by transferor and transferee and submitted to company within two months of its execution.
2. Stamp duty @ 0.25% on the value of the shares (i.e. consideration or the fair value, whichever is higher) will need to be paid in Indian rupees.
3. The transferee / his agent must submit to the company a certificate in the Form FC-TRS endorsed by the AD bank that the payment has been made by the transferee.
4. On receipt of the said certificate, the company may record the transfer in its books.