Transfer by way of Sales of a Joint venture or Wholly Owned Subsidiary (JV or WOS) Outside India without Write Off without Prior Approval of Reserve Bank of India

Transfer by way of Sales of a Joint venture or Wholly Owned Subsidiary (JV or WOS) Outside India without write off without Prior Approval of Reserve Bank of India 

Transfer by way of sale of shares of a JV / WOS

An Indian Party, without prior approval of the Reserve Bank, may transfer by way of sale to another Indian Party which complies with the provisions of Regulation 6 of FEMA Notification 120/RB-2004 dated July 7, 2004 or to a person resident outside India, any share or security held by it in a JV or WOS outside India subject to the following conditions:

1. the sale does not result in any write off of the investment made. 
   
   
2. the sale is to be effected through a stock exchange where the shares of the overseas JV/ WOS are listed;
   
   
3. if the shares are not listed on the stock exchange and the shares are disinvested by a private arrangement, the share price is not less than the value certified by a Chartered Accountant / Certified Public Accountant as the fair value of the shares based on the latest audited financial statements of the JV / WOS;
   
   
4. the Indian Party does not have any outstanding dues by way of dividend, technical know-how fees, royalty, consultancy, commission or other entitlements and / or export proceeds from the JV or WOS;
   
   
   
5. the overseas concern has been in operation for at least one full year and the Annual Performance Report
    together with the audited accounts for that year has been submitted to the Reserve Bank;
   
   
6. the Indian party is not under investigation by  CBI / DoE/ SEBI / IRDA or any other regulatory authority in India. 
   
   Ref :  
   A.P. (DIR Series) Circular No. 73 dated 29 June 2011