Declaration for Subscription and Transfer of Securities
PUBLISHED ON: 07-05-2022
- Declaration under Securities Transfer Form: MCA has modified Form No. SH.4, which is the instrument of transfer of securities held in physical form.
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- In Form No. SH.4, a transferee is now required to declare whether a government approval under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (“NDI Rules”) is required prior to transfer of shares.
- In case a government approval under the NDI Rules is required prior to transfer of shares, the same is required to be obtained and enclosed along with Form No. SH.4.
- Declaration under Private Placement Offer cum Application Letter: MCA has amended the Companies (Prospectus and Allotment of Securities) Rules, 2014 and restricted companies from making an offer or invitation of securities to a national of, or body corporate incorporated in, a country which shares a land border with India, unless a government approval under the NDI Rules has been obtained.
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- In a Private Placement Offer cum Application Letter (Form PAS-4), an applicant is now required to declare whether a government approval under the NDI Rules is required prior to subscription of shares.
- In case a government approval under the NDI Rules is required prior to subscription of shares, the same is required to be obtained and enclosed along with Form PAS-4.
The aforementioned was notified by MCA vide notifications dated May 4, 2022 (available here) and May 5, 2022 (available here), respectively.
