Foreign Entity Share Purchase

Summary

Foreign entities can purchase shares in indian companies under fema regulations, ensuring compliance with rbi pricing guidelines and sectoral caps. Rbi approval may be necessary depending on the specific case. Detailed information can be found on the rbi website and the ministry of commerce and industry’s foreign investment promotion board. Consult these resources for specific notifications and guidelines.

Full Conversation

Can a foreign entity buy shares of a indian incorporated company when they are in a JV agreement , but at fair value when the company has no assets
Hi!
Yes, a foreign entity can buy shares of an Indian incorporated company even when they are in a JV agreement. Here are some key points:
- The purchase must comply with the Foreign Exchange Management Act (FEMA) regulations.
- Approval from the Reserve Bank of India (RBI) may be required.
- The transaction must follow pricing guidelines and sectoral caps.
Do you need more details on the specific regulations or the process?
Can a foreign entity buy shares of a indian incorporated company , but at fair value when the company has no assets
Yes, a foreign entity can buy shares of an Indian incorporated company at fair value, even when the company has no assets. However, certain regulations must be followed:
- Compliance with the Foreign Exchange Management Act (FEMA) regulations.
- Adherence to the pricing guidelines set by the Reserve Bank of India (RBI).
- Approval from the RBI if required.
Would you like more detailed information on any specific regulation or process?
yes
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To provide more detailed information, could you specify which aspect of the regulations or process you need more details on? For example, are you interested in the process of obtaining RBI approval, or the specific pricing guidelines under FEMA?
fema
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Under the Foreign Exchange Management Act (FEMA), the following points are essential:
- Sectoral Caps: Ensure the investment is within the permitted sectoral limits.
- Pricing Guidelines: Follow the pricing guidelines set by the RBI.
- RBI Approval: Obtain prior RBI approval if required for your specific case.
Would you like to know more about the process of obtaining RBI approval or the pricing guidelines?
can you tell me where i can find this information
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You can find detailed information regarding FEMA regulations, sectoral caps, pricing guidelines, and RBI approval on the official Reserve Bank of India (RBI) website. Additionally, the Ministry of Commerce and Industry’s Foreign Investment Promotion Board (FIPB) provides useful resources.
Would you like assistance with anything else?
yes
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Sure, how else can I assist you with your legal issue?
can you link these
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You can find detailed information and necessary links regarding FEMA regulations, sectoral caps, pricing guidelines, and RBI approval on the following websites:
- [Reserve Bank of India (RBI)](https://www.rbi.org.in/)
- [Ministry of Commerce and Industry’s Foreign Investment Promotion Board (FIPB)](https://www.fipb.gov.in/)
Is there anything else you need help with?
no like to the specific notification
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It seems like your queries were primarily about regulatory compliance, and you have now been provided with the relevant links. If you need any further assistance or have any other legal queries, feel free to ask!
i want the link to the notification
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You can find specific notifications related to FEMA regulations and foreign investment on the RBI website. Here is a direct link to the FEMA notifications section:
- [RBI FEMA Notifications](https://rbi.org.in/Scripts/BS_FemaNotifications.aspx)
If you have any other questions or need further assistance, feel free to ask!