FEMA:
RBI has issued the amendments to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Seventh Amendment) Regulations, 2016. As per the amended Regulations, In case of transfer of shares between a resident buyer and a non-resident seller or vice-versa, a maximum of 25% (twenty five per cent) of the total consideration can be paid by the buyer on a deferred basis within a period not exceeding eighteen months from the date of the transfer agreement. For this purpose, an escrow management may be made between the buyer and seller. The Regulation further state that total consideration finally paid for the shares must be compliant with the applicable pricing guidelines.
SEBI:
SEBI cautions investors not to invest in Schemes offered by entities barred by SEBI from raising money or entities not registered with SEBI. Certain Collective Investment Scheme(s) (CIS) have come to the notice of SEBI, which are offered by entities which are neither registered with SEBI nor offer document of such schemes have been filed with SEBI. Appropriate actions have been taken against such entities and its Directors and since January 01, 2011, SEBI has passed orders against 91 entities and its Directors, carrying on unregistered CIS. Investors and general public are hereby cautioned that other than "GIFT Collective Investment Management Company Limited" no other entity is registered with SEBI under the CIS Regulations.
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