An agreement between the parties as regards to selling price. Share transfer form has to be signed by the seller and to be sent to Indian company for registering the transfer .
The company may make transfer of shares after observing the formalities at its end.
In case of individual buyers , they can route the payment ( Sales consideration) through any authorised dealer to the foreign seller.
For making payment to overseas investor towards purchasing shares from foreign company by resident Indian,s the Authorised dealer would require the following documents.
1. Application for Outward Remittance in Annexure & Form A2.
2. Form 15CA & 15 CB
3. Letter from the Company Secretary - Existing share holding pattern of the company.
4. Letter from the Chartered Accountant - Appropriate taxes have been deducted and valuation of shares under discounted cash flow method.
5. Copy of FC-GPR B - Latest annual return submitted to RBI (31 July 2010)
6. FC-TRS return in duplicate within 60 days of transfer .
7. Any Agreement/letter between seller & Purchaser.