{"id":18203,"date":"2021-10-08T14:49:21","date_gmt":"2021-10-08T09:19:21","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=18203"},"modified":"2024-06-03T11:44:10","modified_gmt":"2024-06-03T06:14:10","slug":"share-allotment-to-foreigners-under-fema-companies-act","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/","title":{"rendered":"Share Allotment to Foreigners under FEMA\/ Companies Act"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-18204 size-full\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1.png\" alt=\" Share Allotment to Foreigners under FEMA\/ Companies Act\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1.png 1200w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1-300x158.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1-1024x538.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1-615x323.png 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1-400x210.png 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1-292x153.png 292w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p style=\"text-align: justify;\">Foreign Exchange Management Act, 1999 (FEMA) came to force by parliament approval enacted on 29<sup>th<\/sup> December 1999. This act complies the accords of WHO and acted as a building block for Money Laundering Act, 2002. FEMA is a set of regulation which is powered and governed by RBI to pitch in foreign investment and foreign trade in India. FDI is allowed to be made in \u2013 Indian Companies, Firm or Proprietary Concern by <a href=\"https:\/\/www.cagmc.com\/nri-taxation\/\">NRI<\/a> or PIO no engaged in agriculture, plantation, real estate or Print media, Indian venture capital fund, LLP.<\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\">\n<p style=\"text-align: justify;\"><strong>Table of Content:<\/strong><\/p>\n<ul style=\"text-align: justify;\">\n<li><a href=\"#applicability\">Applicability and Objective of the Act<\/a><\/li>\n<li><a href=\"#fema\">FEMA replaced FERA<\/a><\/li>\n<li><a href=\"#currency\">Foreign currency and Exchange<\/a><\/li>\n<li><a href=\"#investment\">Foreign Direct Investment<\/a><\/li>\n<li><a href=\"#made\">Investment made on reparation and non-repartition basis<\/a><\/li>\n<li><a href=\"#mode\">Mode of investment under FDI<\/a><\/li>\n<li id=\"applicability\"><a href=\"#fixation\">Fixation of price of shares in FDI<\/a><\/li>\n<li><a href=\"#report\">Inflow Report<\/a><\/li>\n<li><a href=\"#regulating\">Regulating factors on Investments made by NRI<\/a><\/li>\n<li><a href=\"#shares\">Acquisition of right shares and bonus shares<\/a><\/li>\n<li><a href=\"#conclusion\">Conclusion<\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 style=\"text-align: justify;\"><strong>Applicability and Objective of the Act <\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li>Extends to all part of India.<\/li>\n<li>Applicable towards all branches, offices, agencies situated outside India either owned or controlled by person in or outside India.<\/li>\n<li>Applicable toward any person who has their residential status situated outside India.<\/li>\n<li>It helps in facilitating external trade and raising payments.<\/li>\n<li>To develop and maintain of foreign market in India.<\/li>\n<\/ul>\n<p id=\"fema\" style=\"text-align: justify;\"><strong>Note<\/strong> \u2013 foreign contribution cannot be accepted by political parties and other person and organization mentioned U\/s 3 O=of Act.<\/p>\n<h2 style=\"text-align: justify;\"><strong>FEMA replaced FERA<\/strong><\/h2>\n<p style=\"text-align: justify;\">FEMA replaced FERA (Foreign Exchange Regulation Act 1973. FERA was introduced when FOREX was in emergence.<\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><strong>FEMA<\/strong><\/td>\n<td style=\"border: 1px solid #555;\"><strong>FERA<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Came to force on December 29<sup>th<\/sup> 1999<\/td>\n<td style=\"border: 1px solid #555;\">Came to force on January 1<sup>st<\/sup> 1974.<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Inclusion of \u201cAuthorized Person\u201d with widened explanation. Inclusive of \u201cBanking Units\u201d incorporated offshore.<\/td>\n<td style=\"border: 1px solid #555;\">Confined explanation for Authorized Person.<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Confines the section to 49.<\/td>\n<td style=\"border: 1px solid #555;\">Covered with essentials in 81 provisions.<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Offences are classified as \u201cCivil Offence\u201d<\/td>\n<td style=\"border: 1px solid #555;\">Offences are classified as \u201cCriminal Offence.\u201d<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Manages foreign exchange.<\/td>\n<td style=\"border: 1px solid #555;\">Preserves foreign exchange.<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Inclusive of \u201cCapital\/ Current Account Transaction\u201d as capital accounts.<\/td>\n<td style=\"border: 1px solid #555;\">No provision in regards to Capital Accounts.<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">EXIM has been defined as per \u201cCustoms Act\u201d<\/td>\n<td style=\"border: 1px solid #555;\">No separate EXIM policies.<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Definition of person as a resident fulfills the condition as mentioned in \u201cIncome Tax Act, 1961.\u201d<\/td>\n<td style=\"border: 1px solid #555;\">Section 2(p) defines Person.<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Separate Tribunals to trial FEMA cases.<\/td>\n<td style=\"border: 1px solid #555;\">Jurisdictional High Court is where the cases trialed.<\/td>\n<\/tr>\n<tr id=\"currency\">\n<td style=\"border: 1px solid #555;\">Everything other than covered in the Act is not controlled by FEMA.<\/td>\n<td style=\"border: 1px solid #555;\">Everything specified was controlled by the Act.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 style=\"text-align: justify;\"><strong>Foreign currency and Exchange <\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li id=\"investment\">Foreign currency involves every currency apart from INR.<\/li>\n<li>Foreign exchange includes deposits, outstanding balances, letter of credit, bill of exchange drawn in Indian Currency but payable in <a href=\"https:\/\/www.cagmc.com\/foreign-company-registration\/\">foreign exchange<\/a> etc.<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Foreign Direct Investment \u00a0<\/strong><\/h2>\n<p style=\"text-align: justify;\">FDI means any investment made by non-resident entity or an individual person residing outside India in the form of Capital, Purchase of Shares, and Convertible Debentures of any Indian Company (Pakistan and Bangladesh are excluded in making <a href=\"https:\/\/www.cagmc.com\/effect-on-fdi-reforms-due-to-covid-19\/\">FDI<\/a>, exempting those who can avail prior approval of FIPB). There are two ways to procure shares in India by foreigners \u2013<\/p>\n<ul style=\"text-align: justify;\">\n<li>Automatic Route<\/li>\n<li>Government Route<\/li>\n<\/ul>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><strong>Description<\/strong><\/td>\n<td style=\"border: 1px solid #555;\"><strong>Automatic Route<\/strong><\/td>\n<td style=\"border: 1px solid #555;\"><strong>Government Route<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\"><strong>Meaning<\/strong><\/td>\n<td style=\"border: 1px solid #555;\">When an investment is allowed without any prior approval either by Government of RBI under consolidated FDI policy.<\/td>\n<td style=\"border: 1px solid #555;\">Approval of the Government or RBI is mandatory to make an investment.<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\"><strong>Procedure<\/strong><\/td>\n<td id=\"made\" style=\"border: 1px solid #555;\">Investor has to notify the regional office involved with RBI within 30 days of receipt of inward remittance that\u2019s issue of shares of foreign investors.<\/td>\n<td style=\"border: 1px solid #555;\">Application to be made in FORM FC \u2013 IL <a href=\"https:\/\/fifp.gov.in\/FIFPForm.aspx\">https:\/\/fifp.gov.in\/FIFPForm.aspx<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 style=\"text-align: justify;\"><strong>Investment made on reparation and non-repartition basis<\/strong><\/h2>\n<p style=\"text-align: justify;\">NRI may invest without limitation in<\/p>\n<ul style=\"text-align: justify;\">\n<li>Information technology \u2013 49%<\/li>\n<li>Banking \u2013 49%<\/li>\n<li>Broadband Sector \u2013 74%<\/li>\n<li>Infrastructure &#8211; 10% Of India\u2019s GDP is based on Construction activities.<\/li>\n<li>Electronic system design and manufacturing \u2013 100%<\/li>\n<li>Automotive \u2013 49%<\/li>\n<li>Mutual funds<\/li>\n<li>Shares\/ Convertible Debentures under FDI scheme as specified in Schedule 1 of FEMA.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>Though the FDI allows investment in varied areas it prohibits investment in areas such as \u2013 <\/strong><\/p>\n<ul style=\"text-align: justify;\">\n<li>Small saving<\/li>\n<li>Public provident fund<\/li>\n<li>Atomic energy<\/li>\n<li id=\"mode\">Lottery<\/li>\n<li>Gambling and betting<\/li>\n<li>Real estate<\/li>\n<li>Business of chit fund etc.<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Mode of investment under FDI<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li>Issue of fresh share<\/li>\n<li>Issue of fresh debentures<\/li>\n<li>Acquisition of shares by transfer (from existing share holder in a way of transfer)<\/li>\n<li>Issues of bonus shares<\/li>\n<li id=\"fixation\">Issues made under Employees Stock Option Scheme<\/li>\n<li>Conversion of external commercial borrowing (ECB) or import of capitl goods by SEZ into equity<\/li>\n<li>Acquisition of shares during merger or amalgamations<\/li>\n<li>Issues made under <a href=\"https:\/\/www.investopedia.com\/terms\/a\/adr.asp\" target=\"_blank\" rel=\"noopener\">American Depository Receipts (ADR)<\/a> or Global Depository Receipts (GDR).<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Fixation of price of shares in FDI<\/strong><\/h2>\n<p style=\"text-align: justify;\">When any fresh issue of shares is made the issue price shall not be less than that of the price applicable to transfer of share from resident to non-resident.<\/p>\n<ul style=\"text-align: justify;\">\n<li id=\"inflow\"><strong>Listed companies<\/strong> &#8211; SEBI is delighted for fixation of price of shares. <strong>(Section 2)<\/strong><\/li>\n<li><strong>Unlisted companies<\/strong> &#8211; gets their share price fixed either by Merchant Bank i.e. registered with SEBI or by a Charted Accountant.<\/li>\n<li><strong>SEZ<\/strong> \u2013 valuations are carried by development commissioner or customs officials.<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Inflow Report <\/strong><\/h2>\n<p style=\"text-align: justify;\"><strong>Section 18(i)(a) of Foreign Investment in India (Schematic Representation)<\/strong>&#8211; It is mandatory for an Indian company which have received FDI or made FDI abroad to file Foreign Liability and Assets (FLA) to RBI not later than 30 days from date of receipt.<\/p>\n<p style=\"text-align: justify;\"><strong>Section 18(i)(b)<\/strong> <strong>of Foreign Investment in India (Schematic Representation)<\/strong>\u2013 a detailed report in regards of the receipt of the amount of consideration for issue of shares\/ convertible debentures together with copies of receipt evidencing the remittance along with KYC report. The report would be acknowledged by the regional office which will later allot an Unique Identification Number.<\/p>\n<p style=\"text-align: justify;\"><strong>Section 18(ii) of Foreign Investment in India (Schematic Representation)<\/strong> \u2013<\/p>\n<p style=\"text-align: justify;\"><strong>Regulation in regards with issue of shares &#8211; <\/strong>the shares has to be issued within 180 days by payment of inward remittance or by debit to NRE\/FCNR. In non delivery of shares within 180 days from date of inward remittance a refund to be initiated immediately through normal banking channel or by crediting in NRE\/FCNR. Failing to comply the conditions in issuance of share or refunding the amount in non failure shall be subjected to penal action from FEMA.<\/p>\n<p style=\"text-align: justify;\"><strong>Note<\/strong> \u2013 RBI relaxes 180 days duration on merits of the cases.<\/p>\n<p style=\"text-align: justify;\"><strong>Section 17 \u2013 Issue of Shares under ESOP (Employees Stock Option)<\/strong><\/p>\n<p id=\"regulating\" style=\"text-align: justify;\">Listed companies\/ unlisted companies are eligible for allotting shares under ESOP to its employees or employees of joint venture\/ wholly owned by foreign subsidy company whereas, an unlisted company has o follow the procedure of the companies Act, 1956.<\/p>\n<p style=\"text-align: justify;\">Any issuing company has to file a report to the regional office concerning the issues made within 30 of days of such issue.<\/p>\n<h2 style=\"text-align: justify;\"><strong>Regulating factors on Investments made by NRI <\/strong><\/h2>\n<p style=\"text-align: justify;\">NRI can purchase and sell shares of Indian company but subjected to following conditions \u2013<\/p>\n<ul style=\"text-align: justify;\">\n<li>Purchase or sale are ought to be made with by a registered broker on recognized stock exchange.<\/li>\n<li id=\"shares\">Paid up value of<a href=\"https:\/\/www.cagmc.com\/buyback-of-shares\/\"> equity shares<\/a> or convertible debentures shouldn\u2019t exceed 5% of total paid up equity capital.<\/li>\n<li>Paid up value of equity shares and convertible debentures purchased by NRI\u2019S shouldn\u2019t exceed 10% of total paid up capital whereas the limit of such can are subject to escalate with the approval of the share holders of the company.<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Acquisition of right shares and bonus shares <\/strong><\/h2>\n<p style=\"text-align: justify;\"><strong>Acquisition<\/strong> &#8211; Foreign investors can invest into Indian companies acquiring existing shares from Indian shareholder or from other NRI shareholder where RBI has granted permission for following transaction such as \u2013<\/p>\n<ul style=\"text-align: justify;\">\n<li>Non-resident can transfer their share in the way of sale\/ gift.<\/li>\n<li>Non-resident can transfer their share in the way of transfer (pricing to be observed).<\/li>\n<li>A resident of India can transfer their share to a <a href=\"https:\/\/www.cagmc.com\/nri-taxation\/\">NRI<\/a> other than companies in financial sector.<\/li>\n<\/ul>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><strong>Acquisition of Right Shares\/ Convertible Debentures<\/strong><\/td>\n<td style=\"border: 1px solid #555;\"><strong>Acquisition of Bonus Shares<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">The acquisition should not increase the percentage of FDI limit. The offer price should be the same as offer made to the residence. The issues made have to be complied with the procedure and form FC GRP has to be filed with RBI in 30 days after such issues.<\/td>\n<td style=\"border: 1px solid #555;\">Shares against which bonus shares are issued by the Indian company were acquired by shareholders in accordance with provision of Act. The shares and debentures that are issued to a person become accorded to the restrictions that are applicable to original shares.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><strong>Depository \u2013\u00a0<\/strong><\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><strong>American Depository Receipt<\/strong><\/td>\n<td style=\"border: 1px solid #555;\"><strong>Global Depository Receipt<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Depository receipt issued in American Market is known as ADR.<\/td>\n<td style=\"border: 1px solid #555;\">Depository receipt issued anywhere apart from American Market is known as GDR.<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\" colspan=\"2\">\n<ul>\n<li>Both the receipt is \u201cNegotiable Security\u201d.<\/li>\n<li>A company can issue ADR\/ GDR, if a person is eligible under FDI scheme.<\/li>\n<li>After the issue and quarterly return of the respective company has to be filed \u201cReturn in Form DR\u201d.<\/li>\n<li id=\"conclusion\">Unlisted companies with which SEBI has signed bilateral agreements and can list on foreign exchanges such as IOSCO\/ FATF and comply with instructions on downstream investment of RBI.<\/li>\n<li>ADR\/ GDR follow the FDI regulations.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 style=\"text-align: justify;\"><strong>Conclusion<\/strong><\/h2>\n<p style=\"text-align: justify;\">FDI has become an integral part of national development. The inflow has contributed an effective overall growth of the economy in recent times and the nation have benefited the economy in terms of investments thorough capital, technology, job creations etc. FDI is not only an alternative way of investment and generates employment in globalized world. With a strong inflow of FDI the nation\u2019s balance will improve in terms of money and strengthens the value of INR against global currencies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Foreign Exchange Management Act, 1999 (FEMA) came to force by parliament approval enacted on 29th December 1999. This act complies [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":18204,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Share Allotment to Foreigners under FEMA\/ Companies Act - CAGMC<\/title>\n<meta name=\"description\" content=\"Read about Share Allotment to Foreigners under FEMA\/ Companies Act, Applicability, Mode of investment under FDI, Acquisition of right shares &amp; bonus shares.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Share Allotment to Foreigners under FEMA\/ Companies Act - CAGMC\" \/>\n<meta property=\"og:description\" content=\"Read about Share Allotment to Foreigners under FEMA\/ Companies Act, Applicability, Mode of investment under FDI, Acquisition of right shares &amp; bonus shares.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/\" \/>\n<meta property=\"og:site_name\" content=\"Goyal Mangal &amp; Company\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goyalmangal\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-08T09:19:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-03T06:14:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"CA Rohit Goyal\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"CA Rohit Goyal\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/\"},\"author\":{\"name\":\"CA Rohit Goyal\",\"@id\":\"https:\/\/www.cagmc.com\/blog\/#\/schema\/person\/5f02def6f9f1b0c01a0b98f175455e46\"},\"headline\":\"Share Allotment to Foreigners under FEMA\/ Companies Act\",\"datePublished\":\"2021-10-08T09:19:21+00:00\",\"dateModified\":\"2024-06-03T06:14:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/\"},\"wordCount\":1526,\"publisher\":{\"@id\":\"https:\/\/www.cagmc.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1.png\",\"articleSection\":[\"Miscellaneous\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/\",\"url\":\"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/\",\"name\":\"Share Allotment to Foreigners under FEMA\/ Companies Act - CAGMC\",\"isPartOf\":{\"@id\":\"https:\/\/www.cagmc.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1.png\",\"datePublished\":\"2021-10-08T09:19:21+00:00\",\"dateModified\":\"2024-06-03T06:14:10+00:00\",\"description\":\"Read about Share Allotment to Foreigners under FEMA\/ Companies Act, Applicability, Mode of investment under FDI, Acquisition of right shares & bonus shares.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/#primaryimage\",\"url\":\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1.png\",\"contentUrl\":\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1.png\",\"width\":1200,\"height\":630},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.cagmc.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Share Allotment to Foreigners under FEMA\/ Companies Act\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.cagmc.com\/blog\/#website\",\"url\":\"https:\/\/www.cagmc.com\/blog\/\",\"name\":\"Goyal Mangal &amp; Company\",\"description\":\"Best CA Firm in Jaipur\",\"publisher\":{\"@id\":\"https:\/\/www.cagmc.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.cagmc.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.cagmc.com\/blog\/#organization\",\"name\":\"Goyal Mangal & Company\",\"url\":\"https:\/\/www.cagmc.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.cagmc.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.cagmc.com\/wp-content\/uploads\/2020\/01\/logo4.png\",\"contentUrl\":\"https:\/\/www.cagmc.com\/wp-content\/uploads\/2020\/01\/logo4.png\",\"width\":673,\"height\":145,\"caption\":\"Goyal Mangal & Company\"},\"image\":{\"@id\":\"https:\/\/www.cagmc.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/goyalmangal\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.cagmc.com\/blog\/#\/schema\/person\/5f02def6f9f1b0c01a0b98f175455e46\",\"name\":\"CA Rohit Goyal\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.cagmc.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/d79e3f7ca50abbe876a91e43f2b7ac00?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/d79e3f7ca50abbe876a91e43f2b7ac00?s=96&d=mm&r=g\",\"caption\":\"CA Rohit Goyal\"},\"description\":\"CA Rohit Goyal has experience in multiple spheres including general functions in the field of Auditing, Accounting, and handling Scrutiny Assessments, Taxation Matters along with the specialized functions including Finance, Banking and also handles the field of Stock Audit, Internal Audit and other Various Assignments of Banks.\",\"url\":\"https:\/\/www.cagmc.com\/blog\/author\/rohitgoyal\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Share Allotment to Foreigners under FEMA\/ Companies Act - CAGMC","description":"Read about Share Allotment to Foreigners under FEMA\/ Companies Act, Applicability, Mode of investment under FDI, Acquisition of right shares & bonus shares.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/","og_locale":"en_US","og_type":"article","og_title":"Share Allotment to Foreigners under FEMA\/ Companies Act - CAGMC","og_description":"Read about Share Allotment to Foreigners under FEMA\/ Companies Act, Applicability, Mode of investment under FDI, Acquisition of right shares & bonus shares.","og_url":"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/","og_site_name":"Goyal Mangal &amp; Company","article_publisher":"https:\/\/www.facebook.com\/goyalmangal","article_published_time":"2021-10-08T09:19:21+00:00","article_modified_time":"2024-06-03T06:14:10+00:00","og_image":[{"width":1200,"height":630,"url":"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1.png","type":"image\/png"}],"author":"CA Rohit Goyal","twitter_card":"summary_large_image","twitter_misc":{"Written by":"CA Rohit Goyal","Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/#article","isPartOf":{"@id":"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/"},"author":{"name":"CA Rohit Goyal","@id":"https:\/\/www.cagmc.com\/blog\/#\/schema\/person\/5f02def6f9f1b0c01a0b98f175455e46"},"headline":"Share Allotment to Foreigners under FEMA\/ Companies Act","datePublished":"2021-10-08T09:19:21+00:00","dateModified":"2024-06-03T06:14:10+00:00","mainEntityOfPage":{"@id":"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/"},"wordCount":1526,"publisher":{"@id":"https:\/\/www.cagmc.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/#primaryimage"},"thumbnailUrl":"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1.png","articleSection":["Miscellaneous"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/","url":"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/","name":"Share Allotment to Foreigners under FEMA\/ Companies Act - CAGMC","isPartOf":{"@id":"https:\/\/www.cagmc.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/#primaryimage"},"image":{"@id":"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/#primaryimage"},"thumbnailUrl":"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1.png","datePublished":"2021-10-08T09:19:21+00:00","dateModified":"2024-06-03T06:14:10+00:00","description":"Read about Share Allotment to Foreigners under FEMA\/ Companies Act, Applicability, Mode of investment under FDI, Acquisition of right shares & bonus shares.","breadcrumb":{"@id":"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/#primaryimage","url":"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1.png","contentUrl":"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/10\/Share-Allotment-to-Foreigners-under-FEMA-Companies-Act-1.png","width":1200,"height":630},{"@type":"BreadcrumbList","@id":"https:\/\/www.cagmc.com\/blog\/share-allotment-to-foreigners-under-fema-companies-act\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.cagmc.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Share Allotment to Foreigners under FEMA\/ Companies Act"}]},{"@type":"WebSite","@id":"https:\/\/www.cagmc.com\/blog\/#website","url":"https:\/\/www.cagmc.com\/blog\/","name":"Goyal Mangal &amp; Company","description":"Best CA Firm in Jaipur","publisher":{"@id":"https:\/\/www.cagmc.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.cagmc.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.cagmc.com\/blog\/#organization","name":"Goyal Mangal & Company","url":"https:\/\/www.cagmc.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.cagmc.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.cagmc.com\/wp-content\/uploads\/2020\/01\/logo4.png","contentUrl":"https:\/\/www.cagmc.com\/wp-content\/uploads\/2020\/01\/logo4.png","width":673,"height":145,"caption":"Goyal Mangal & Company"},"image":{"@id":"https:\/\/www.cagmc.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/goyalmangal"]},{"@type":"Person","@id":"https:\/\/www.cagmc.com\/blog\/#\/schema\/person\/5f02def6f9f1b0c01a0b98f175455e46","name":"CA Rohit Goyal","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.cagmc.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d79e3f7ca50abbe876a91e43f2b7ac00?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d79e3f7ca50abbe876a91e43f2b7ac00?s=96&d=mm&r=g","caption":"CA Rohit Goyal"},"description":"CA Rohit Goyal has experience in multiple spheres including general functions in the field of Auditing, Accounting, and handling Scrutiny Assessments, Taxation Matters along with the specialized functions including Finance, Banking and also handles the field of Stock Audit, Internal Audit and other Various Assignments of Banks.","url":"https:\/\/www.cagmc.com\/blog\/author\/rohitgoyal\/"}]}},"_links":{"self":[{"href":"https:\/\/www.cagmc.com\/blog\/wp-json\/wp\/v2\/posts\/18203"}],"collection":[{"href":"https:\/\/www.cagmc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cagmc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cagmc.com\/blog\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cagmc.com\/blog\/wp-json\/wp\/v2\/comments?post=18203"}],"version-history":[{"count":4,"href":"https:\/\/www.cagmc.com\/blog\/wp-json\/wp\/v2\/posts\/18203\/revisions"}],"predecessor-version":[{"id":51909,"href":"https:\/\/www.cagmc.com\/blog\/wp-json\/wp\/v2\/posts\/18203\/revisions\/51909"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cagmc.com\/blog\/wp-json\/wp\/v2\/media\/18204"}],"wp:attachment":[{"href":"https:\/\/www.cagmc.com\/blog\/wp-json\/wp\/v2\/media?parent=18203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cagmc.com\/blog\/wp-json\/wp\/v2\/categories?post=18203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cagmc.com\/blog\/wp-json\/wp\/v2\/tags?post=18203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}