The Central government has amended the rules associated with
share transfer forms as required to transfer shares of companies
under the Companies Act 2013. Based on the amendment, the
buyer is required to confirm in the form of a declaration in the
share transfer form, that no approval is required under the Foreign
Exchange Management (Non-debt Instruments) Rules, 2019 (the
“NDI Rules”), or where such approval
is required under the NDI Rules, it has been obtained.
Under the NDI Rules, the company is required to ensure that if
it is indeed registering a transfer of shares, then it must ensure
compliance with foreign investment norms as captured under the
Consolidated Foreign Direct Investment Policy of the Government of
India as passed from time to time, and the NDI Rules. With this
amendment, when a transferee, i.e., a buyer, purchases shares of an
Indian company from a transferor (regardless of whether resident or
non-resident), the buyer will be required to give a
