FC-GPR and FC-TRS
FOREIGN DIRECT INVESTMENT
WHAT RBI SAYS!
INSTANCES WHICH REQUIRE AN INDIAN COMPANY TO FILE FORM FC-GPR FOR ISSUE OF SHARES TO PERSON RESIDENT OUTSIDE INDIA ARE AS FOLLOWS:
- Issue of Bonus Shares to person resident outside India.
- Issue of Right Shares to person resident outside India.
- Amalgamation/Merger of person resident outside India with Indian Company.
- Cross Border Merger Transactions.
- Shares issued against any funds payable to person resident outside India by Indian Company.
- Sweat Equity Shares and shares issued for Employee Stock Option Plan (ESOP).
- Issue of Shares on conversion of convertible debentures or convertible preference shares or any other instruments.
INDIAN COMPANY MAY ALSO ISSUE SHARES TO PERSON RESIDENT OUTSIDE INDIA OTHER THAN THE PERSON RESIDENT OUTSIDE INDIA WHO HAVE REMITTED THE FUNDS BY FILING FORM FC-GPR WITH SOME EXTRA DOCUMENTS WHICH ARE AS FOLLOWS:
- KYC documents of beneficial owner and remitter.
- A No Objection Certificate which shall be issued by remitter of funds in favour of Beneficial Owner and in which relationship between the two will be mentioned.
- A letter from Beneficial Owner stating the reasons as to why remitter remitted the funds on its behalf.
- A copy of Board Resolution for this purpose.