Section 10(9) in Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017
(9)In case of transfer of capital instruments between a person resident in India and a person resident outside India, an amount not exceeding twenty five percent of the total consideration(a)can be paid by the buyer on a deferred basis within a period not exceeding eighteen months from the date of the transfer agreement; or(b)can be settled through an escrow arrangement between the buyer and the seller for a period not exceeding eighteen months from the date of the transfer agreement; or(c)can be indemnified by the seller for a period not exceeding eighteen months from the date of the payment of the full consideration, if the total consideration has been paid by the buyer to the seller.Provided the total consideration finally paid for the shares shall be compliant with the applicable pricing guidelines.
