Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
There are certain instances when a foreign investor in India would want to exit. If there is no particular rate of return on their investment, then a foreign investor can exit the country. Another reason for exit options is when there are demand and supply fluctuations in the market; then the exit options can be used by a foreign investor.
If there is an adequate rate of return on the investment, then the investor will continue to pursue business in the country. In such instances, exit options by foreign investors would not take place. There are several restrictions imposed by the RBI and FEMA before they exit.
However, specific requirements have to be met by the foreign investor before proceeding with the exit option. These exit options are available to investors who invest in equity and capital instruments. Before proceeding with the exit, an investor has an opportunity to sell the capital instrument or equity. Investors cannot do this immediately after investing in the country. There is a minimum period of lock-in for business operations for a foreign investor before they may choose the exit.
Table of Contents
The RBI has taken steps to relax the options available for investors to exit from the country. However, exit options are necessary for the following reasons:
Apart from the above points, exit options are required by a country as this would open doors to new investment opportunities in the country. Exit options by investors can be used after the lock-in period.
The following are regulatory authorities regarding exit options by foreign investors:
In order to be eligible, the foreign investor should be present in India and have the following:
Also, Read: Foreign Investment in India and its Regulatory Framework.
Step 1- Registration for Business User:
Step 2- Logging into FORMS website.
Step 3- Logging into Single Master Form (SMF).
Step 4- Select the Return type- Form FC-TRS.
Step 5- Common Investment Details in the Form.
Step 6- Fill the Common Details on the Website.
Step 7- Fill in the information regarding particulars of transfer, such as the type of capital instrument that is going to be transferred.
Step 8- Fill in the remittance details- however; this will not be applicable if this is a gift. Remittance details- Mode of payment, name of AD Bank, Address of AD bank, Amount remitted/received, whether the remitter is different from the foreign investor.
Step 9- Shareholding Pattern
Step 10- Submitting the Form
For transfer by way of Gift:
For transfer by way of sale:
Read, Also: Foreign Investment in Indiain Capital Instruments.
A joint venture is a strategic business arrangement in which two or more companies collaborate...
With the rising inflation rates and various other economic factors, wealthy Americans are incre...
Before approaching the new suppliers or any other third parties, you should always go for the v...
With the increasing landscape of Fintech Companies, it is increasingly vital that fintech compl...
This blog gives a detailed description through an audit report for industrial waste by examinin...
Are you human?: 7 + 2 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Overview of FDI policy for the E-Commerce sector The Government of India (GOI) has brought about rules related to t...
19 Jun, 2020
In its Global Investment Trend Monitor report, the United Nations Conference on Trade and Development said that the...
30 Jan, 2021
Chat on Whatsapp
Hey I'm Suman. Let's Talk!