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TMI BlogForeign Investments in India Transfer of security by way of gift - ProcedureX X X X Extracts X X X X X X X X Extracts X X X X ..... by way of gift - Procedure Attention of the Authorised Dealer (AD) banks is invited Regulation 10 A (a) of the Reserve Bank Notification No. FEMA 20/2000-RB dated 3rd May 2000, as amended from time to time, in terms of which a person resident in India who proposes to transfer any security, by way of gift, to a person resident outside India, is required to make an application to Reserve Bank. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onee) is eligible to hold such security under Schedule 1, 4 and 5 of the Notification ibid. b. The gift does not exceed 5 per cent of the paid-up capital of the Indian company/each series of debentures/each mutual fund scheme. c. The applicable sectoral cap/foreign direct investment (FDI) limit in the Indian company is not breached. d. The transferor (donor) and the transferee (donee) are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2005]. A copy of the Government Notification G.S.R. No. 504(E) dated July 25, 2005 incorporating the amendment is annexed (Annex 2). 5. Authorised Dealer banks may bring the contents of this circular to the notice of their constituents/customers concerned. 6. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of such security. 5. 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. 6. In case of shares and debentures, a certificate from a Chartered Accountant on the value of such securities according to the guidelines issued by the Securities Exchange Board of India or the erstwhile CCI for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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