Revised reporting norms for FDI

The Reserve Bank of India (RBI) has finally revised the procedure for reporting the transfer of shares and convertible debentures by way of sale from resident to non resident and vice versa under the Foreign Direct Investment (FDI) scheme.

To capture the details of investment in a more comprehensive manner, it has come up with few modifications in the reporting mechanism, like - The sale consideration in respect of equity instruments purchased by a person resident outside India, remitted into India through normal banking channels, shall be subjected to a KYC check.

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.

Prior RBI approval will be required in case of transfer of equity instruments where the non-resident acquirer proposes deferment of payment of the amount of consideration, etc.