Documents to be submitted by a resident person for transfer of shares to a person resident outside India by way of gift:
i) Name and address of the transferor (donor) and the transferee (donee).
ii) Relationship between the transferor and the transferee.
iii) Reasons for making the gift.
iv) In case of Government dated securities and treasury bills and bonds, a certificate issued by a CA on market value of such security.
v) In case of units of domestic mutual funds and units of Money Market Mutual Funds, a certificate from the issuer on the Net Asset Value of such security.
vi) In case of shares and convertible debentures, a certificate from a Chartered Accountant on the value of such securities according to the guidelines issued by Securities & Exchange Board of India or as per any internationally accepted pricing methodology on arm’s length basis for listed companies and unlisted companies, respectively.
vii) Certificate from the concerned Indian company certifying that the proposed transfer of shares/convertible debentures by way of gift from resident to the non-resident shall not breach the applicable sectoral cap/ FDI limit in the company and that the proposed number of shares/convertible debentures to be held by the non-resident transferee shall not exceed 5 per cent of the paid up capital of the company.
viii) An undertaking from resident transferor that value of security to be transferred together with any security already transferred by transferor, as gift, to any person residing outside India does not exceed the rupee equivalent of $ 50,000during a financial year*.
ix) A declaration from donee accepting partly paid shares or warrants that donee is aware of the liability as regards calls in arrear and consequences thereof.
Please refer to 'section 2' of Annexure-3 Consolidated FDI Policy at link for more information.
*RBI’s A.P. (DIR Series) Circular No. 14 Dated 15.09.2011