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TMI BlogForeign Direct Investment in India - Transfer of Shares/Preference Shares/Convertible Debentures by way of Sale - Modified Reporting MechanismX X X X Extracts X X X X X X X X Extracts X X X X ..... No.16 dated October 4, 2004, wherein, it has been stipulated that in case of transfer of shares from a resident to a non-resident / non-resident Indian and vice versa, the transferee/his duly appointed agent is required to approach the investee company to record the transfer in their books along with the certificate in form FC-TRS from the designated AD branch that the remittances have been received by the transferor/payment has been made by the transferee. In addition, the designated AD branch is also required to submit two copies of the form FC-TRS received from their constituents/customers together with the statement of inflows/outflows on account of remittances received/made in connection with transfer of shares, by way of sale, to IBD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egory - I bank at the time of receipt of funds. In case, the remittance receiving AD Category - I bank is different from the AD Category - I bank handling the transfer transaction, the KYC check should be carried out by the remittance receiving bank and the KYC report be submitted by the customer to the AD Category - I bank carrying out the transaction along with the form FC-TRS. 4. Further, in order to ensure that the form FC-TRS is submitted within a reasonable timeframe, it has been decided that henceforth, the form FC-TRS should be submitted to the AD Category - I bank, within 60 days from the date of receipt of the amount of consideration. The onus of submission of the form FC-TRS within the given timeframe would be on the transferor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person resident in India i. Consent Letter duly signed by the seller and buyer or their duly appointed agent and in the latter case the Power of Attorney Document. ii. The shareholding pattern of the investee company after the acquisition of shares by a person resident outside India. iii. Certificate indicating fair value of shares from a Chartered Accountant. iv. Copy of Broker's note if sale is made on Stock Exchange. v. Declaration from the buyer to the effect that he is eligible to acquire shares/compulsorily and mandatorily convertible preference shares/debentures under FDI policy and the existing sectoral limits and Pricing Guidelines have been complied with. vi. Declaration from the FII/sub account to the effect that the indivi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Financial Institution 11. NRIs/PIOs 12. others) Date and Place of Incorporation Address of the seller (including e-mail, telephone Number Fax no) 6 Particulars of earlier Reserve Bank/FIPB approvals 7 Details regarding shares/compulsorily and mandatorily convertible preference shares (CMCPS)/debentures to be transferred Date of the transaction Number of shares CMCPS/debentures Face value in Rs. Negotiated Price for the transfer ** in Rs. Amount of consideration in Rs. 8 Foreign Investments in the company No of shares Percentage Before the transfer After the transfer 9 Where the shares/CMCPS/debentures are listed on Stock Exchange Name of the Stock exchange Price Quoted on the Stock exchange Where the shares/CMCPS/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be signed by the non-resident seller. Certificate by the AD Branch It is certified that the application is complete in all respects. The receipt /payment for the transaction are in accordance with FEMA Regulations/Reserve Bank guidelines. Signature Name and Designation of the Officer Date: Name of the AD Branch AD Branch Code ð SWF means a Government investment vehicle which is funded by foreign exchange assets, and which manages those assets separately from the official reserves of the monetary authorities. Ð SWF means a Government investment vehicle which is funded by foreign exchange assets, and which manages those assets separately from the official reserves of the monetary authorities. Annex II [A. P. (DIR Series) Circu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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