Foreign Direct Investment (FDI) in India - Transfer of Shares/Preference Shares/Convertible Debentures by way of Sale - Revised pricing guidelines

FDI share transfer pricing guidelines revised-new valuation and certification requirements for resident-non resident equity transfers.

Revised pricing guidelines for transfer of equity instruments between residents and non residents require listed shares to be transferred at the ruling market price and unlisted shares to be valued by a SEBI registered Category I merchant banker or Chartered Accountant using the discounted free cash flow method or other prescribed methodologies; the computed price must be certified. Transfers by non residents to residents are subject to the pricing ceiling based on resident to non resident rules, with specified procedures for exchange traded and non exchange sales and a permitted premium where management control passes to resident promoters.