FEMA: Transfer of Shares under FDI
In terms of Section 2 (ze) of Foreign Exchange Management Act, 1999 "Transfer" includes sale, purchase, exchange, mortgage, pledge, gift, loan or any other form of transfer of right, title, possession or lien. Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com Transfer of shares by a person resident in India to person resident outside India, as well as the transfer of shares by a person resident outside India to a person resident in India is a capital account transaction. In terms of Section 6(3) of the Foreign Exchange Management Act, 1999, RBI has the power to make regulations to prohibit, restrict or regulate the transfer of shares. Find Here Our Article on VENTURE CAPITAL FUND and ANGEL FUND