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RBI Notification No.FEMA.368/2016-RB Dt. 20.05.2016

RBI introduces Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Seventh Amendment) Regulations, 2016 vide After Regulation 10, the following regulation should be inserted as 10A:-

In case of transfer of shares between a resident buyer and a non resident seller or vice-versa, the buyer can pay not more than 25% of the total consideration on a deferred basis or by an escrow account within a period not exceeding 18 months from the date of transfer agreement. If the total consideration is paid by the buyer, the seller may furnish an indemnity for an amount not more than the 25% of the total consideration for a period not exceeding 18 months from the date of payment of full consideration.

 The said Amended Regulation can be accessed at the following link: FEMA Notftn no.368 2016 RB Dt 20.05.2016

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