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A person resident in India can transfer by way of sale, shares/ convertible debentures (including transfer of subscriber’s shares), of an Indian company under private arrangement to a person resident outside India, subject to the guidelines of RBI.
Also person resident outside India can transfer by way of sale, shares/ convertible debentures (including transfer of subscriber’s shares), of an Indian company under private arrangement to a person resident in India subject to guideliness issued by RBI.
1. Consent Letter between both donor and donee;
2. Pre and post Transaction shareholding pattern;
3. Board resolution for Transfer of Shares;
4. Share certificate and share transfer form.
FCTRS stands for Foreign Currency Transfer of Shares. RBI has specified Form FCTRS for making reporting of Transfer of Capital Instruments between a person resident in india and a person resident outside India.
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 within the given timeframe would be on the transferor / transferee, resident in India.
The company shall duly hold a board meeting as per Section 173 for approving the share transfer and passing the appropriate resolution.
FC-GPR is to filed when shares are issued to a non-resident whereas FC-TRS is filed when existing shares are transferred to a non-resident.
