a) The donee is eligible to hold such a security under Schedules 1, 4 and 5 of these Regulations.

b) The gift does not exceed 5% of the paid up capital of the Indian company/each series of debentures/each mutual fund scheme.

c) The applicable sectoral cap/ foreign direct investment limit in the Indian company is not breached.

d) The donor and the donee are relatives as defined in section 6 of the Companies Act, 1956.

e) The value of security to be transferred by the donor together with any security transferred to any person residing outside India as gift in the calendar year does not exceed the rupee equivalent of USD 25,000.

f) Such other conditions as considered necessary in public, interest by the Reserve Bank.

(a) Name and address of the donor and the donee.

(b) Relationship between the donor and the donee.

(c) Reasons for making the gift.

(d) In case of Government dated securities and treasury bills and bonds, a certificate issued by a Chartered Accountant on the market value of such securities.

(e) 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.

(f) In case of shares and debentures, a certificate from a Chartered Account on the value of such securities according to the guidelines issued by the Securities & Exchange Board of India or the erstwhile CCI with regard to listed companies and unlisted companies respectively.

(g) 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 debenture to be held by the non-resident transferee shall not exceed 5% of the paid up capital of the company".

Sd/­
VINAY BAIJAL
Chief General Manager