11A.8
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Transfer/Sale of Shares/Bonds/Debentures of Indian companies
In terms of Section 19(5) of FERA 1973, transfer of shares/bonds/debentures of a company registered in India by foreign companies/foreign nationals to residents is required to be confirmed by Reserve Bank on an application made to it by the transferor or transferee. Applications for the purpose should be made by foreign companies/non-resident foreign nationals in form TS 1 and by resident foreign nationals in form TS 2 (Also see paragraphs 10B 8 and 10B 9). Foreign nationals of Indian origin resident outside India have been granted general exemption from the above provisions in respect of transfer of shares/bonds/debentures held by them in companies in India through recognised stock exchanges [See paragraph 10C 25(i)]