The Companies Act, 1956
108C. Restriction on the transfer of shares of foreign companies.
1[108C. Restriction on the transfer of shares of foreign companies.No body corporate or bodies corporate under the same management, which holds, or hold in the aggregate ten per cent or more of the nominal value of the equity share capital of a foreign company, having an established place of business in India, shall transfer any share in such foreign company to any citizen of India or any body corporate incorporated in India except with the previous approval of the Central Government and such previous approval shall not be refused unless the Central Government is of opinion that such transfer would be prejudicial to the public interest.]
1. Section 108C ins. by Act 58 of 1991, sec. 28 (w.r.e.f. 27-9-1991). Earlier section 108C were inserted by Act 41 of 1974, sec. 12 (w.e.f. 1-2-1975) and were omitted by Act 30 of 1984, sec. 52 (w.e.f. 1-8-1984).