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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 ..... Annex to A. P. (DIR Series) Circular 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 tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Annex II) by the remittance receiving AD Category - 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 withi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The following documents are enclosed For sale of shares/compulsorily and mandatorily convertible preference shares/debentures by a 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 e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thers Date and Place of Incorporation 4 Address of the buyer (including e-mail, telephone number. Fax no.) 5 Name of the seller Constitution/Nature of the disinvesting entity (Specify whether 1. Individual 2. Company 3. FII 4. FVCI 5. Foreign Trust 6. Private Equity Fund 7. Pension/ Provident Fund 8. Sovereign Wealth Fund (SWFÐ) 9. Partnership/Proprietorship firm 10. Financial Institution 11. NRIs/PIOs 12. others) Date and Place of Incorporation Address of the seller (including e-mail, telephone Number Fax no) 6 Particul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulsorily and mandatorily convertible preference shares/debentures of the company in terms of the FDI Policy. It is not a transfer relating to shares compulsorily and mandatorily convertible preference shares/debentures 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 authorised agent Date: Note In respect of the transfer of shares/compulsorily and mandatorily convertible preference shares/compulsorily and mandatorily convertible debentures from resident to non resident the declaration has to be signed by the non resident buyer, and in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 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 : Annex III [A. P. (DIR Series) Circular No 63 dated April 22, 2009] Proforma Statement of inflows/outflows on account of remittance received/made in connection with transfer of shares/compulsorily and mandatorily convertible preference shares/debentures, by way of sale Category-wise Part A - NRI/erstwhile OCB Part B - Foreign National/non-resident i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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