{"id":24553,"date":"2019-09-13T14:39:44","date_gmt":"2019-09-13T09:09:44","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=24553"},"modified":"2019-11-12T18:12:51","modified_gmt":"2019-11-12T12:42:51","slug":"filing-of-form-fc-trs-transfer-of-shares","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/filing-of-form-fc-trs-transfer-of-shares\/","title":{"rendered":"Filing of Form FC-TRS: Transfer of Shares"},"content":{"rendered":"

Form FC-TRS is to\nbe submitted to the designated AD branch in quadruplicate within 60 days from\nthe date of receipt of funds regarding-<\/p>\n\n\n\n

Transfer of shares<\/strong><\/h3>\n\n\n\n
  1. Compulsorily and mandatorily\nconvertible preference shares (CMCPS)\/ <\/li>
  2. Debentures,<\/li>
  3. Others by way of\nsale from resident to non-resident\/non-resident to resident.<\/li><\/ol>\n\n\n\n

    Every transfer of\nshares \/securities between the non-resident and resident shall require prior\napproval of RBI and the reporting shall be made in the Form FC-TRS.<\/p>\n\n\n\n

    What is FC-TRS?<\/h2>\n\n\n\n

    Form FC-TRS is filed,\nIn case of transfer of shares or convertible debentures of an Indian Company\nfrom a resident to a Non-Resident\/Non-Resident Indian and vice versa by way of\nsale. The Indian company is required to report the transactions to the AD\nCategory – I bank in the form FC-TRS.<\/p>\n\n\n\n

    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<\/strong>[1]<\/a><\/sup> 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.<\/p>\n\n\n\n

    Who is responsible for filing the\nForm-FC-TRS?<\/strong><\/h2>\n\n\n\n

    The onus of\nfiling the Form FC-TRS is on the Indian resident whether transferor or\ntransferee.<\/p>\n\n\n\n

    Note –<\/strong> In the case where the Non-Resident investor, acquires shares on the stock exchanges, the responsibility of filing the form FC-TRS is on Investee Company.<\/div>\n\n\n\n

    What are the documents required for\nfiling Form FC-TRS?<\/strong><\/h2>\n\n\n\n

    For filing Form,\nFC-TRS below mentioned documents are enclosed-<\/p>\n\n\n\n

    1. Consent Letter by the seller and buyer or their duly appointed agent and in the latter case the Power of Attorney Document.<\/li>
    2. Disclosure of the shareholding pattern of the investee company after the acquisition of shares by a person resident outside India.<\/li>
    3. Certificate from a Chartered accountant indicating the fair value of shares.<\/li>
    4. Broker’s note, in case of a sale, is made on the Stock Exchange.<\/li>
    5. Buyer’s declaration that he is eligible under FDI policy and the existing sectoral limits and Pricing Guidelines to have been complied with.<\/li><\/ol>\n\n\n\n
      Note –<\/strong> He is eligible to acquire shares\/compulsorily and mandatorily convertible preference shares\/debentures\/others<\/div>\n\n\n\n