Millennium Post

... Tightens exit rules for foreign investors from private firms

The Reserve Bank of India (RBI) on Tuesday modified norms governing issuance and transfer of shares for foreign investors in unlisted companies, laying stress on using international prices to arrive at valuations and did away with an ‘assured exit price’ at the time of investment.
‘Where the shares of an Indian company are not listed on a recognised stock exchange, the transfer of shares shall be at a price not less than the fair value worked out as per any internationally accepted pricing methodology for valuation of shares on an ‘arm’s length’ basis,’ 
RBI said.
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