Section 108C - Restriction on the transfer of shares of foreign companies. - Companies Act, 1956

Restriction on the transfer of shares of foreign companies. 108C. No body corporate or bodies corporate under the same management, which holds, or hold in the aggregate, ten per cent or more of the nominal value of the equity share capital of a foreign company, having an established place of business in India, shall transfer any share in such foreign company to any citizen of India or any body corporate incorporated in India except with the previous approval [1] of the Central Government and such previous approval shall not be refused unless the Central Government is of opinion that such transfer would be prejudicial to the public interest. ----------------------------------- [1] See rule 5B and Form 7E of the Companies (Central Government's) General Rules and Forms, 1956. Fee prescribed is Rs. 500.