Amendment in Form No. SH-4 (Securities Transfer Form under Companies Act)

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Amendment in Form No. SH-4 (Securities Transfer Form under Companies Act)

 

A declaration for “approval required under FEMA NDI Rules” has been inserted. Such requirements make it difficult to breach the rule of law.

Also, we frequently come across cases where FEMA regulations are not even considered while executing the transaction, which becomes troublesome later on. Such a declaration would help in drawing attention of those who are unaware of applicable rules.

Following is the full text of Declaration:

“Declaration:
– Transferee is not required to obtain the Government approval under the Foreign Exchange
Management (Non-debt Instruments) Rules, 2019 prior to transfer of shares; or

– Transferee is required to obtain the Government approval under the Foreign Exchange Management
(Non-debt Instruments) Rules, 2019 prior to transfer of shares and the same has been obtained and is
enclosed herewith.”.

 

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