Reserve Bank amends pricing of shares

0
1208
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

The pricing guidelines with respect to the issue and transfer of shares from a resident to a non-resident and vice-versa has been revised by the Reserve Bank of India (RBI) through a notification issued on 7 April. This was followed by a circular on 4 May.

Before this revision the issue and transfer of unlisted shares to non-residents was based on the price determined according to the guidelines issued in 1990 by the erstwhile Controller of Capital Issues (ex-CCI valuation). However, they have now been revised to a more progressive discounted free cash flows (DCF) method.

These revised pricing guidelines create a new category of preferential allotment – the price of which should be no lower than the price as applicable to transfer of shares from residents to non-residents.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

The legislative and regulatory update is compiled by Nishith Desai Associates, a Mumbai-based law firm. The authors can be contacted at nishith@nishithdesai.com. Readers should not act on the basis of this information without seeking professional legal advice.

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link