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FEMA1 min read

Transfer of Shares

Transfer of equity shares, preference shares, or convertible instruments between residents and non-residents or vice versa under FEMA. Must comply with pricing guidelines (FMV for unlisted, market price for listed) and reporting requirements.

Last updated: 17 May 2026

Frequently Asked Questions (FAQs)🔗

Q1. What is Transfer of Shares in Indian corporate law?
Transfer of equity shares, preference shares, or convertible instruments between residents and non-residents or vice versa under FEMA. Must comply with pricing guidelines (FMV for unlisted, market price for listed) and reporting requirements.
Q2. Why is Transfer of Shares important for compliance?
Transfer of Shares is governed by the Foreign Exchange Management Act, 1999 and regulated by RBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Transfer of Shares?
Transfer of Shares is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with FEMA regulatory matters in India.

Contextual Analysis & Regulatory Updates🔗

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