Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Seventh Amendment) Regulations, 2016


RBI UPDATE

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Seventh Amendment) Regulations, 2016

RBI has further amended Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000 whereby regulation 10A has been inserted after regulation 10: 

10A - In case of transfer of shares between a resident buyer and a non-resident seller or vice-versa, not more than twenty five per cent of the total consideration can be paid by the buyer on a deferred basis within a period not exceeding eighteen months from the date of the transfer agreement. For this purpose, if so agreed between the buyer and the seller, an escrow arrangement may be made between the buyer and the seller for an amount not more than twenty five per cent of the total consideration for a period not exceeding eighteen months from the date of the transfer agreement or if the total consideration is paid by the buyer to the seller, the seller may furnish an indemnity for an amount not more than twenty five per cent of the total consideration for a period not exceeding eighteen months from the date of the payment of the full consideration.

Provided the total consideration finally paid for the shares must be compliant with the applicable pricing guidelines

These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Seventh Amendment) Regulations, 2016.

They shall come into force from the date of publication in the official Gazette.


POLICIES AND CODES

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Board Diversity Policy with help document*

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Board Evaluation Policy with help document

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Charter for Stakeholder Relationship Committee

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CSR Policy with help document

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Nomination and Remuneration Policy with help document

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Vigil Mechanism Policy with help document

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Risk Management Policy with help document

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Related Party Framework / Policy

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Code of Conduct for Independent Directors

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