Transfer of Existing Shares from Non- residents to Residents in India

Abstract:

Transfer of Existing Shares from Non- residents to Residents in India are allowed by the government of India. Transfer of Existing Shares from Non- residents to Residents in India occurs through various ways such as by the way of gift and sale.

Various ways of Transfer of Existing Shares from Non-residents to Residents in India:

Transfer means the mortgage, sale, loan, acquisition, gift, purchase or transfer of right.

Transfer of Existing Shares from Non- residents to Residents in India takes place according to the regulations of FEMA. Transfer of Existing Shares from Non- residents to Residents in India occurs by the way of gift and sale.

Various ways of Transfer of Existing Shares from Non- residents to Residents in India by the way of gift are:

• A non resident Indian can transfer his existing shares by the way of gift to another non resident Indian
• A person who is residing outside India can transfer his existing shares to an Indian resident through the way of gift
• A person who is residing outside India can transfer his existing shares to any person who is residing outside India through the way of gift on the condition, that the acquirer does not have a tie up in the same sector in India

Various ways of Transfer of Existing Shares from Non- residents to Residents in India by the way of sale are:

• A person who is residing outside India can transfer his existing shares through the way of sale to any person who is residing outside Indiam,
provided that the acquirer does not have a tie up in the same sector in India
• A person who is residing outside India can sell his existing shares through a broker in the Indian Stock Exchange
• A non resident Indian can sell his existing shares to another non resident Indian.

Last Updated on 05/07/2011