To
All
Category - I Authorised Dealer Banks
Madam / Sir,
Reporting
under FDI Scheme – Transfer of Shares/Convertible Debentures - Revised procedure
Attention
of Authorised Dealer Category - I (AD Category - I) banks is invited to A. P.
(DIR Series) Circular No.16 dated October 4, 2004 wherein, it has been stipulated
that 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 transaction is required to be reported by the Indian company to the
AD Category – I bank in the form FC-TRS.
2. With a view
to capture the details of investment in a more comprehensive manner, the form
FC-TRS has been revised, which is enclosed as Annex I. Accordingly,
the proforma for 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 IBD/FED/nodal branch of the AD Category – I bank
to the Reserve Bank has also been modified, which is enclosed as Annex
II.
3. It has also been decided to introduce a KYC
check on the remitter / investor. Accordingly, AD Category – I banks receiving
the remittance are required to submit a KYC report on the non-resident investor
as per the format enclosed in Annex III. In case AD Category
– I bank receiving the remittance is different from the AD Category – I bank receiving
the FC-TRS for the sale transaction, the KYC check should be carried out by the
AD Category – I bank receiving remittance and the KYC report should be forwarded
to the AD Category – I bank to whom form FC-TRS is submitted by the Indian company.
4. The directions contained in this circular shall come
in to force with immediate effect. All other instructions mentioned in A. P. (DIR
Series) Circular No. 16 dated October 4, 2004 shall remain unchanged.
5.
AD Category – I banks may bring the contents of this circular to the notice of
their constituents and customers concerned.
6. The directions
contained in this circular have been issued under sections 10(4) and 11(1) of
the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice
to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Salim Gangadharan)
Chief General
Manager-in-Charge
*Passport
No., Social Security No, or any Unique No. certifying the bonafides of the remitter
as prevalent in the remitter’s country
We confirm
that all the information furnished above is true and accurate as provided by the
overseas remitting bank of the non-resident investor.
(Signature
of the Authorised Official
of the AD bank receiving the remittance)
Date:
Place:
Stamp :