REPORTING OF FORM FC-GPR TO RBI

REPORTING OF FORM FC-GPR TO RBI

RBI Circular No. 40 dated 1^st February 2016; RBI has made it mandatory to report any transactions and filing of forms online in respect of issue and transfer of shares from an Indian Entity to outside India.

Form FC-GPR comes into use whenever there is a new issue of shares. The onus to submit the form or comply with the laws is on the resident entity.Any Company or Organization receiving foreign investment must report the transaction to the RBI within a stipulated timeline. Similar to the filing of FC-TRS which is filed online, the Form FC-GPR is also required to be filed online.

What is TimeLine of Form FC-GPR

The timeline is briefly described below:

1. a) Foreign funds received
2. b) Within 30 days of receiving the money file ARF (Advance Remittance Form) with the RBI
3. c) RBI will issue UIN (Unique Identification Number) after submission of ARF
4. d) Within 180 days from the date of receiving the money, allot the shares
5. e) File FC-GPR within 30 days from the date of allocation of shares.

Before reporting the transaction, the applicant needs to obtain the following:

• Unique Identification Number from RBI by reporting of Advanced Foreign Remittance.
• KYC report for the beneficiary if the beneficiary and remitter are different entities.
• CS certificate
• Certificate from SEBI registered Merchant Banker / Chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident outside India
• Disclaimer Certificate
• Statutory Auditor Certificate
• Board resolution
• LRN(Loan Registration Number) allotted
• Copy of FIPB approval (if required)
• Details of Transfer of shares if any
• No objection certificate from the remitter for the shares being allotted to the third party mentioning their relationship
• Letter from the foreign investor explaining the reason for making subscription to shares by the remitter on his behalf
• Copy of agreement/Board resolution from the investee company for issue and allotment of shares to the foreign investor, other than the remitter
• Reason for delay in submission (if required)

Once all the above documents are obtained, the applicant shall duly fill the Form FC-GPR and complete it in all respects without any error, attach the Digital Signature of the applicant and upload the form online at https://www.ebiz.gov.in.

In this case also, it is to be noted that merely filing the Form FC-GPR does not discharge an entity of its duties in regard to compliance of the relevant laws, the same shall be considered complete only after it is approved by the RBI.

Document required for FCGPR

General Instructions

• The electronic form (Form) can be accessed from service landing page and can be filled offline
• If you choose “Load prefill data” option while opening the form, then some fields may get prefilled with data you have filled previously while applying for this service. You may change this data if you wish.
• The saved draft can be accessed later from “My Saved Drafts” section in Menu options. This draft is available for 3 months or until the form is submitted.
• Field marked with * are mandatory and needs to be filled in before a form can be submitted on e-Biz portal. You may not be able to leave some of the field’s blank in the e-Form. In case you wish not to enter data in a field, please input “NA” if it is a text/description field or a 0, if it is a numeric field.
• The e-form needs to be digitally signed using a digital signature by the applicant. If applicant wishes to make any modifications to an already signed e-Form, right-clicking on the signature field and choosing “Clear signature” will enable editing of form and any modifications can be made to the form.

Electronic Attachments:

Upload the file using the attached link and if you wish to remove any file, use the remove link.

• Reason for delay in submission: this attachment is required if the form is submitted after 30 days from the date of receipt of funds
• CS Certificate
• Certificate from SEBI registered Merchant Banker / Chartered Accountant indicating the manner of arriving at the price of the shares issued to the person resident outside India.
• Disclaimer certificate
• Statutory Auditor Certificate
• Board resolution
• LRN(Loan Registration Number) allotted
• Copy of FIPB approval (if required)
• Transfer of shares details, if applicable
• If the investor and remitter are separate entities, please provide the following documents:
• No objection certificate from the remitter for the shares being allotted to the third party mentioning their relationship
• Letter from the foreign investor explaining the reason for making subscription to shares by the remitter on his behalf
• Copy of agreement/Board resolution from the investee company for issue and allotment of shares to the foreign investor, other than the remitter
• KYC report for the beneficiary
• Any other attachments: Add any other document if required.

• Name of the Person
• Place details
• Date of signing the electronic form
• Designation.
• Digital Signature of Authorized signatory of the investee company.

After the New Process of RBI :

• FIRMS has decreased the number of phases via which any reporting is carried out by constraining its response to: pending approval & approval or refusal as opposed to eBiz, where there have been multiple phases with the possibility of resubmission.
• It should therefore be noted that under FIRMS, there is no possibility of resubmitting, resending, or affixing any clarification as soon as the report is generated.
• The Authorized Dealer Bank must take due to precaution whilst also approving or dismissing the form and therefore can not take more than 5 – 7 business days doing the same.