Transfer of shared of an Indian Company from a non resident to a non resident

[Sanjeev Sharma]

Whether any permission is required from FIPB or RBI for Transfer of shares of an Indian company from a non resident to a non resident ? How the valuation and withoding tax aspect to be done ??

AI Summary

No FIPB or RBI approval needed for non-resident share transfers under FEMA regulations. Check FDI policy for details. A query was raised regarding the necessity of obtaining permission from the Foreign Investment Promotion Board (FIPB) or the Reserve Bank of India (RBI) for the transfer of shares of an Indian company from one non-resident to another. The response indicated that there are no restrictions on such transfers under the Foreign Exchange Management Act (FEMA) regulations or the Foreign Direct Investment (FDI) policy. For further details, it was suggested to consult the latest consolidated FDI policy. The discussion focused on the aspects of valuation and withholding tax related to the transaction.