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Form FC-TRS is to be submitted to the designated AD branch in quadruplicate within 60 days from the date of receipt of funds regarding-
Every transfer of shares /securities between the non-resident and resident shall require prior approval of RBI and the reporting shall be made in the Form FC-TRS.
Form FC-TRS is filed, In case of transfer of shares or convertible debentures of an Indian Company from a resident to a Non-Resident/Non-Resident Indian and vice versa by way of sale. The Indian company is required to report the transactions to the AD Category – I bank in the form FC-TRS.
Form FC-TRS has been revised with a view to capture the details of investment in a more comprehensive manner, which is enclosed as Annex I. The reporting of inflow/outflow details on account of remittances received / made in connection with the transfer of shares / convertible debentures, by way of sale, submitted by the AD Category – I bank to the Reserve Bank of India.
The onus of filing the Form FC-TRS is on the Indian resident whether transferor or transferee.
For filing Form, FC-TRS below mentioned documents are enclosed-
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The additional information that is required for filing FC-TRS are-
Declaration by the transferor/transferee
I/ We hereby declare that:
i. The particulars given above are true and correct to the best of my/our knowledge and belief. ii. I/ We was/were holding the shares as per FDI Policy under FERA/ FEMA Regulations on repatriation/non repatriation basis.
iii. I/ We are eligible to acquire the shares of the company in terms of the FDI Policy. It is not a transfer relating to shares of a company engaged in financial services sector or a sector where general permission is not available.
iv. The Sectoral limit under the FDI Policy and the pricing guidelines have been adhered to.
Signature of the Declarant or
his duly authorized agent
In respect of the transfer of shares from resident to non-resident the declaration has to be signed by the non-resident buyer, and in respect of the transfer of shares from non-resident to resident the declaration has to be signed by the non-resident seller.
Further, a certificate by the AD Branch is required certifying that the application is complete in all respects. The receipts and payments for the transactions are in accordance with the FEMA regulations and Reserve Bank of India guidelines.
The declaration must be signed by the name and designation of the officer along with the AD Branch name and Branch Code.
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