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TMI BlogPrior permission of Reserve Bank in certain cases for transfer of securityX X X X Extracts X X X X X X X X Extracts X X X X ..... mit in the Indian company is not breached. (d) The donor and the donee are relatives as defined in section 6 of the Companies Act, 1956. 7[e) The value of security to be transferred by the donor together with any security transferred to any person residing outside India as gift during the financial year does not exceed the rupee equivalent of US $ 50,000.] (f) Such other conditions as considered necessary in public, interest by the Reserve Bank. (iii) The application for approval referred to in sub clause (i) shall contain the following information/ documents: (a) Name and address of the donor and the donee. (b) Relationship between the donor and the donee. (c) Reasons for making the gift. (d) In case of Government dated securities and treasury bills and bonds, a certificate issued by a Chartered Accountant on the market value of such securities. (e) In case of units of domestic mutual funds and units of Money Market Mutual Funds, a certificate from the issuer on the Net Asset Value of such security. 16[(f) In case of shares or convertible debentures or warrants, a certificate from a Chartered Accountant or Merchant Banker registered with Securities & Exchange B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... compliance with the requirements of Schedule 1, other than pricing guidelines; and (b) The pricing for the transaction is compliant with the applicable SEBI Regulations/guidelines; and (c) Chartered Accountants Certificate to the effect that compliance with the applicable SEBI regulations/ guidelines as indicated above is attached to the form FC-TRS to be filed with the AD bank. (v) where the investee company is in the financial services sector (a) 15[***] (b) The requirements of Schedule 1 are complied with. Explanation : For the purpose of this Regulation, "financial services", shall mean service rendered by banking and non-banking companies regulated by the Reserve Bank, insurance companies regulated by Insurance Regulatory and Development Authority (IRDA), pension funds regulated by the Pension Fund Regulatory and Development Authority, other companies regulated by any other financial regulator and such other services as may be directed by Reserve Bank from time to time,] 11[(c) any 24[shares or convertible debentures or warrants] by way of sale, shall make an application to the Reserve Bank for its approval if (i) the transfer is to take place at a price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent (Guarantees) Regulations, as amended from time to time.] 14[D. A non-resident including Non Resident Indian may acquire shares of a listed Indian company on the recognised stock exchange through a registered broker under FDI Scheme provided that; a. The non-resident investor has already acquired the control in accordance with SEBI (Substantial Acquisition of Shares and Takeover) Regulations and continues to hold such control; b. The amount of consideration for purchase of shares on the recognised stock exchange for transfer to non-residents may be paid as specified in para 8 of Schedule 1 to Notification No. FEMA.20/2000-RB dated 3rd May, 2000 or out of the dividend payable by Indian investee company in which the non- resident has acquired and continues to hold the control in accordance with SEBI (Substantial Acquisition of Shares and Takeover) Regulations, provided the right to receive dividend is established and the dividend amount has been credited to specially designated non-interest bearing rupee account for acquisition of shares on the recognised stock exchange.] ---------------------- Note: 1. The words 'not being erstwhile OCBs" has bee added vide Notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndian Company whose shares or convertible debentures are proposed to be transferred is not engaged in rendering any financial service; (ii) that the transfer does not fall within the purview of the provisions of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997; and (iii) that the concerned parties adhere to pricing guidelines, documentation and reporting requirements for such transfers as may be specified by Reserve Bank, from time to time." 11. Substituted vide Notification No. FEMA. 242/2012-RB Dated 19-10-2012 w.e.f. 4th day of November 2011, before it was read as "6[(c) any security by way of sale, shall make an application to the Reserve Bank for its approval if, (i) the activity of the Indian company, whose securities are being transferred, falls outside the Automatic Route, and the approval of the FIPB has been obtained for the said transfer; (ii) the activity of the Indian company whose securities are being transferred, falls under the financial services sector; (iii) the transfer falls within the purview of the provisions of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 1997;and (iv) the transfer is to take place at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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