Filing of FC-TRS

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Form Foreign Currency-Transfer of Shares (FC-TRS)

Form FC-TRS shall be filed for transfer of capital instruments between:

A person resident outside India holding capital instruments in an Indian company on a repatriable basis and person resident outside India holding capital instruments on a non-repatriable basis; and
A person resident outside India holding capital instruments in an Indian company on a repatriable basis and a person resident in India

The onus of reporting shall be on the resident transferor / transferee or the person resident outside India holding capital instruments on a non-repatriable basis, as the case may be. Transfer of capital instruments on a recognized stock exchange by a person resident outside India shall be reported by such person in Form FC-TRS to the authorized dealer bank.

Transfer of capital instruments prescribed in regulation 10(9), shall be reported in Form FC-TRS to the authorized dealer on receipt of every tranche of payment. The onus of reporting shall be on the resident transferor / transferee. Transfer of ‘participating interest / rights’ in oil fields shall be reported Form FC-TRS

Non-Applicability

Transfer of capital instruments by way of sale between a person resident outside India holding capital instruments on a non-repatriable basis and person resident in India is not required to be reported in Form FC-TRS.

Time Limit for Filing

The form FCTRS shall be filed with the authorized dealer bank within 60 days of transfer of capital instruments or receipt / remittance of funds whichever is earlier.

Transfer From

Resident to Non-Resident (including NRI / OCI on repatriable basis)
Non-Resident (including NRI / OCI on repatriable basis) to Resident
NRI / OCI / eligible investor on non-repatriable basis to Non-Resident (including NRI / OCI on repatriable basis)
Non-Resident (including NRI / OCI on repatriable basis) to NRI / OCI / eligible investor on non-repatriable basis

Transfer Type

Transfer as per Regulation 10(3) of FEMA 20(R) – Sale of capital instruments from a person resident outside India to a person resident in India
Transfer as per Regulation 10(4) of FEMA 20(R) – Sale of capital instruments from a person resident in India, including NRI / OCI or eligible investor under Schedule 4 to FEMA 20(R) to a person resident outside India
Transfer as per Regulation 10(5) of FEMA 20(R) – Gift of capital instruments from a person resident in India, including NRI / OCI or eligible investor under Schedule 4 to FEMA 20(R) to a person resident outside India
Transfer as per Regulation 10(12) of FEMA 20(R) – Invocation of pledge
Transfer of capital instruments as per Regulation 3 to FEMA 20(R)

What are the penalties for non-compliance?

Please refer “Master Direction- Compounding of Contraventions under FEMA, 1999” as amended from time to time.

What is investment on repatriation basis and investment on non-repatriation basis?

‘Investment on repatriation basis’ means an investment, the sale / maturity proceeds of which are, net of taxes, eligible to be repatriated out of India, and the expression ‘Investment on non-repatriation basis’, shall be construed accordingly.