FEMA requires observation of its provisions in letter and spirit and if any contravention may land in penalties on the erring company and individuals. There are various conditions and stipulations in case of FDI , ODI , investment by individuals in foreign shares , purchase of assets in foreign countries , extending guarantees , availing ECBs , supplier's credit . In this column , I will discuss all intricacies and complications involving the interpretation of FEMA Act provisions in detail.
Tuesday, April 23, 2013
Transfer of shares/convertible debentures from Resident to Non-Resident
of shares/convertible debentures from Resident to Non-Resident
Transfer of shares or
convertible debentures by Resident to Non-Resident is allowed subject to
various terms and conditions.
The ‘Person Resident outside India’ now includes
incorporated non-resident entity, foreign national, NRI, FII other than
The foreign national, NRI, FII were earlier excluded from the
definition of the ‘Person Resident outside India’ for the purposes of transfer
of shares/convertible debentures from resident to the non-residents.