Foreign Direct Investment(FDI) in India . Reporting mechanism for transfer of equity shares/fully and mandatorily convertible preference shares, debentures.
As per the RBI circular dated September 6, 2013, a non-resident including a Non Resident Indian, who holds control in an Indian company, has been permitted(under the FDI scheme) to acquire shares of that company on a stock exchange in India through a registered broker, in accordance with SEBI (Substantial Acquisition of Shares and Takeover) Regulations.
In continuation to the above mentioned circular dated September 6, 2013 , the RBI has issued an extended circular dated May 2, 2014, as per which, in case the Non Resident investor (including an NRI) acquires shares of your company on the stock exchange through a registered broker, in accordance with SEBI( Substantial Acquisition of Shares and Takeover) your company(as the investee company) will be required to file form FC-TRS with the AD Category-I bank, within 60 days.
Please note, the requirement to file form FC-TRS by the investee company has come into effect from May 2, 2014.