{"id":3053,"date":"2017-03-18T12:13:03","date_gmt":"2017-03-18T06:43:03","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=3053"},"modified":"2021-11-02T17:25:54","modified_gmt":"2021-11-02T11:55:54","slug":"corporate-and-professional-update-march-16-2017","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/","title":{"rendered":"REPORTING OF FOREIGN INVESTMENT TO RBI"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69eaa373adbf2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69eaa373adbf2\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/#REPORTING_OF_FOREIGN_INVESTMENT_TO_RBI\" title=\"REPORTING OF FOREIGN INVESTMENT TO RBI\">REPORTING OF FOREIGN INVESTMENT TO RBI<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/#INWARD_REMITTANCE_AND_FIRC\" title=\"INWARD REMITTANCE\u00a0AND\u00a0FIRC\">INWARD REMITTANCE\u00a0AND\u00a0FIRC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/#KNOW_YOUR_CUSTOMER_PROCESS\" title=\"KNOW YOUR CUSTOMER PROCESS\">KNOW YOUR CUSTOMER PROCESS<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/#RBI_Relaxes_KYC_Norms_Video-KYC_to_Be_Counted_as_Full_KYC_for_brand_spanking_new_Accounts\" title=\"RBI Relaxes KYC Norms, Video-KYC to Be Counted as Full KYC\u00a0for brand spanking new\u00a0Accounts\">RBI Relaxes KYC Norms, Video-KYC to Be Counted as Full KYC\u00a0for brand spanking new\u00a0Accounts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/#KEP_POINTS_OF_THE_ANNOUCEMENT\" title=\"KEP POINTS OF THE ANNOUCEMENT\">KEP POINTS OF THE ANNOUCEMENT<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/#VIDEO_KYC_FOR_SMALL_BUSINESSES\" title=\"VIDEO KYC\u00a0FOR SMALL\u00a0BUSINESSES\">VIDEO KYC\u00a0FOR SMALL\u00a0BUSINESSES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/#KYC_VIA_DIGILOCKER\" title=\"KYC VIA DIGILOCKER\">KYC VIA DIGILOCKER<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/#CONVERSION_OF_LIMITED_KYC_TO_FULL_KYC_ACCOUNTS\" title=\"CONVERSION OF LIMITED KYC TO FULL KYC ACCOUNTS\">CONVERSION OF LIMITED KYC TO FULL KYC ACCOUNTS<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/#REPORTING_OF_INWARD_REMITTANCE_TO_RBI\" title=\"REPORTING OF INWARD REMITTANCE TO RBI\">REPORTING OF INWARD REMITTANCE TO RBI<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/#ALLOTMENT_OF_SHARES_FILING_OF_FC-GPR\" title=\"ALLOTMENT OF SHARES &amp; FILING OF FC-GPR\">ALLOTMENT OF SHARES &amp; FILING OF FC-GPR<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/#KEY_POINTS_OF_FOREIGN_CURRENCY_%E2%80%93_TRANSFER_OF_SHARES\" title=\"KEY POINTS OF FOREIGN CURRENCY \u2013 TRANSFER OF SHARES \">KEY POINTS OF FOREIGN CURRENCY \u2013 TRANSFER OF SHARES <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/#REGISTRATION_ON_RBI-FIRMS_PORTAL\" title=\"REGISTRATION ON RBI-FIRMS PORTAL\">REGISTRATION ON RBI-FIRMS PORTAL<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/#TRANSFER_OF_SECURITIES\" title=\"TRANSFER OF SECURITIES\">TRANSFER OF SECURITIES<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-march-16-2017\/#AMOUNT_OF_LSF_PRESCRIBED_BY_RBI_FOR_DELAY_REPORTING\" title=\"AMOUNT OF LSF PRESCRIBED BY RBI FOR DELAY REPORTING\">AMOUNT OF LSF PRESCRIBED BY RBI FOR DELAY REPORTING<\/a><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/Foreign-Investment-reporting-under-RBI-Single-Master-Form-SMF..jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13168\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/Foreign-Investment-reporting-under-RBI-Single-Master-Form-SMF..jpg\" alt=\"Foreign-Investment-reporting-under-RBI-Single-Master-Form-SMF.\" width=\"975\" height=\"475\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/Foreign-Investment-reporting-under-RBI-Single-Master-Form-SMF..jpg 628w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/Foreign-Investment-reporting-under-RBI-Single-Master-Form-SMF.-300x146.jpg 300w\" sizes=\"(max-width: 975px) 100vw, 975px\" \/><\/a><\/p>\n<h1><span class=\"ez-toc-section\" id=\"REPORTING_OF_FOREIGN_INVESTMENT_TO_RBI\"><\/span><span style=\"color: #ff0000;\">REPORTING OF FOREIGN INVESTMENT TO RBI<\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>Every Indian Company who receives <a href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/\">FDI<\/a> (Foreign Direct Investment)\u00a0must\u00a0report such FDI inflow\u00a0to order\u00a0bank of India. Therefore,\u00a0this is often\u00a0my\u00a0try and\u00a0clarify the procedure regarding report of FDI to RBI.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"INWARD_REMITTANCE_AND_FIRC\"><\/span><span style=\"color: #000080;\">INWARD REMITTANCE\u00a0AND\u00a0FIRC<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Receipt of foreign currency through VOSTRO ACCOUNT in company\u00a0checking account\u00a0(In USD) from overseas investor.<\/li>\n<li>Upon receipt of amount, Bank would\u00a0enkindle\u00a0purpose of Remittance, kindly inform\u00a0the aim\u00a0to bank \u2018TOWARD SHARE CAPITAL.\u2019<\/li>\n<li>Bank wills Issue FIRC, Check the aim and amount on the FIRC.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"KNOW_YOUR_CUSTOMER_PROCESS\"><\/span><span style=\"color: #000080;\">KNOW YOUR CUSTOMER PROCESS<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Request the investors\u00a0to get\u00a0KYC from their bankers\u00a0within the\u00a0attached format and send it to Indian Bank.<\/li>\n<li>supported\u00a0this overseas bank KYC, the Company\u2019s bank will issue<a href=\"https:\/\/carajput.com\/blog\/tag\/digital-kyc\/\"> KYC<\/a> for the overseas investor.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"RBI_Relaxes_KYC_Norms_Video-KYC_to_Be_Counted_as_Full_KYC_for_brand_spanking_new_Accounts\"><\/span><span style=\"color: #000080;\"><strong>RBI Relaxes KYC Norms, Video-KYC to Be Counted as Full KYC\u00a0for brand spanking new\u00a0Accounts<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Reserve Bank of India (RBI) made an unscheduled announcement\u00a0to deal with\u00a0financial concerns\u00a0associated with\u00a0the second wave of Covid-19<\/li>\n<li>RBI has decided to rationalize certain components of the extant KYC norms<\/li>\n<li>Video KYC has been extended to a wider range\u00a0of companies\u00a0and use cases to ease customer pain points<\/li>\n<li>The\u00a0bank\u00a0Of India (RBI) relaxed rules for Know Your Customer (KYC) mandates, in light of the disruption unleashed by the second Covid-19 wave.<\/li>\n<li>RBI governor Shaktikanta Das announced measures to expand the scope of video KYC\u00a0for little\u00a0and medium businesses among other new categories\u00a0of consumers.<\/li>\n<li>The RBI also allowed\u00a0the utilization\u00a0of video KYC banking entities to convert limited accounts\u00a0to finish\u00a0KYC-compliant accounts. Besides this, the\u00a0financial organization\u00a0announced\u00a0variety\u00a0of digital channels\u00a0to assist\u00a0customers update KYC details.<\/li>\n<li>These measures are implemented considering that individuals are finding it increasingly challenging to go to bank branches physically for completing KYC.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"KEP_POINTS_OF_THE_ANNOUCEMENT\"><\/span><span style=\"color: #000080;\">KEP POINTS OF THE ANNOUCEMENT<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>Allowing video KYC\u00a0for patrons\u00a0who are small businesses and legal entities<\/li>\n<li>Video KYC and Digi locker channels\u00a0to finish\u00a0pending periodic KYC\u00a0of shoppers<\/li>\n<li>Conversion of limited KYC accounts to full KYC accounts<\/li>\n<li>Extension of pending KYC deadline to December 31st, 2021.<\/li>\n<\/ol>\n<p><a href=\"https:\/\/carajput.com\/blog\/tag\/foreign-direct-investment\/\">Read our article ; foreign-direct-investment<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"VIDEO_KYC_FOR_SMALL_BUSINESSES\"><\/span><span style=\"color: #000080;\"><strong>VIDEO KYC\u00a0FOR SMALL\u00a0BUSINESSES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>In the month of January 2020, RBI enabled the use of video-based customer identification process in respect of individual customer onboarding by regulated entities of RBI i.e., customer onboarding by banks.<\/li>\n<li>With the announcement today, RBI has extended this scope\u00a0for tiny\u00a0businesses, legal entity owners, chartered accountancy firms and proprietorship firms.<\/li>\n<li>\u201cTaking forward the initiatives of the\u00a0banking company\u00a0for enhancing customer convenience,\u00a0it&#8217;s\u00a0been decided to rationalize certain components of the extant KYC norms.<\/li>\n<li>These include extending the scope of video KYC\u00a0referred to as\u00a0V-CIP (video-based customer identification process)\u00a0for brand new\u00a0categories\u00a0of shoppers\u00a0in the form of\u00a0proprietorship firms, authorized signatories as well as beneficial owners of legal entities incorporated in India.<\/li>\n<li>The move will improve financial inclusion by allowing fintech companies and banks to use video KYC norms to rapidly onboard and offer financial services to businesses.<strong>\u00a0<\/strong><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"KYC_VIA_DIGILOCKER\"><\/span><span style=\"color: #000080;\"><strong>KYC VIA DIGILOCKER<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>The RBI governor also announced measures to ease customer concerns around pending KYC. Earlier, customers had to physically submit self-attested documents with proof of identity and address for the mandatory KYC to banks.<\/li>\n<li>RBI has now allowed\u00a0the utilization\u00a0of digital channels for this process, through documents issued through Digi Locker.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"CONVERSION_OF_LIMITED_KYC_TO_FULL_KYC_ACCOUNTS\"><\/span><span style=\"color: #000080;\"><strong>CONVERSION OF LIMITED KYC TO FULL KYC ACCOUNTS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>In\u00a0what&#8217;s\u00a0likely to be\u00a0an enormous\u00a0boost to payments banks, the RBI has also allowed the conversion of \u2018limited KYC\u2019 accounts opened on\u00a0the idea\u00a0of Aadhaar-based e-KYC to \u2018fully KYC-compliant\u2019 accounts.<\/li>\n<li>Basically, e-KYC accounts\u00a0are going to be\u00a0treated as full KYC accounts,\u00a0and cannot require in-person KYC procedure.<\/li>\n<li>According to the older rules, customers who opened bank or payment bank accounts through Aadhaar-based e-KYC were termed as \u2018limited KYC\u2019 accounts that had limited access to banking services\u00a0like\u00a0savings limit and credit.<\/li>\n<li>Such customers were required\u00a0to finish\u00a0their KYC process\u00a0head-to-head, but now these accounts can now be converted to full KYC compliant accounts through video KYC.<\/li>\n<li>Considering Covid-related restrictions across the country, RBI has extended the timeline for pending customer KYCs till\u00a0day, 2021. No punitive restrictions on operations shall be imposed on such customers, it said.<\/li>\n<li>In light of the health crisis facing the country, the fintech startup ecosystem has also welcomed these initiatives.<\/li>\n<li>Aadhaar based e-KYC authentication shall now be considered as valid way for KYC. The central KYC push will make it easy for lenders to verify customers at the lending point and further strengthen the general lending ecosystem,\u201d<\/li>\n<li>Fintech companies\u00a0are going to be\u00a0able to\u00a0ensure better digital experience\u00a0for patrons\u00a0in need through these measures, added Patel.<\/li>\n<\/ul>\n<p>The video KYC rules had already made access to financial services much easier for people and consumers, but with the expansion of the video KYC scope, the largest benefit is the greater financial inclusion, particularly among SMEs.<\/p>\n<p>While the move has coincided with lockdowns in most major economic centers which are metros, it&#8217;ll benefit customers and SMEs in Tier 2\/3 markets equally.<\/p>\n<p>It&#8217;s also an enormous boost to the payments bank industry, which already received an effort within the arm last month with the new RBI monetary policy.<\/p>\n<h1><span class=\"ez-toc-section\" id=\"REPORTING_OF_INWARD_REMITTANCE_TO_RBI\"><\/span><span style=\"color: #000080;\"><strong>REPORTING OF INWARD REMITTANCE TO RBI<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<figure id=\"attachment_13162\" aria-describedby=\"caption-attachment-13162\" style=\"width: 941px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/REPORTING-OF-FOREIGN-INVESTMENT-TO-RBI..jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13162\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/REPORTING-OF-FOREIGN-INVESTMENT-TO-RBI..jpg\" alt=\"REPORTING OF FOREIGN INVESTMENT TO RBI.\" width=\"941\" height=\"687\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/REPORTING-OF-FOREIGN-INVESTMENT-TO-RBI..jpg 814w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/REPORTING-OF-FOREIGN-INVESTMENT-TO-RBI.-300x219.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/REPORTING-OF-FOREIGN-INVESTMENT-TO-RBI.-768x560.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/REPORTING-OF-FOREIGN-INVESTMENT-TO-RBI.-800x584.jpg 800w\" sizes=\"(max-width: 941px) 100vw, 941px\" \/><\/a><figcaption id=\"caption-attachment-13162\" class=\"wp-caption-text\">REPORTING OF FOREIGN INVESTMENT TO RBI.<\/figcaption><\/figure>\n<ol>\n<li>Within 30 days from the receipt of Inward remittance,\u00a0the corporate\u00a0needs to\u00a0inform RBI through Company\u2019s Bank (AD Category I Bank) by submitting Annex 6\u00a0together with\u00a0copy of KYC &amp; FIRC \/ Debit Certificate.<\/li>\n<li>The Company\u2019s banker (AD Category I bank) will certify Annex 6 after due verification and forward it to RBI<\/li>\n<li>Upon receipt of intimation in Annex 6, RBI will allot and communicate the Unique\u00a0positive identification\u00a0(UIN)\u00a0for every\u00a0such inward remittance or FCNR \/ NRE \/ NRO account debit.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"ALLOTMENT_OF_SHARES_FILING_OF_FC-GPR\"><\/span><span style=\"color: #000080;\"><strong>ALLOTMENT OF SHARES &amp; FILING OF FC-GPR<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Within 180 days from the receipt of\u00a0the cash\u00a0from overseas or,\u00a0the corporate\u00a0must\u00a0allot shares to the overseas investors (Share price should be\u00a0over\u00a0the value\u00a0as arrived under Discounted\u00a0income\u00a0method)<\/li>\n<li>In case, any amount of fund remains excess after allotment, such sum should be remitted back to the overseas investor within 180 days from the date of receipt.<\/li>\n<li>The entity shall prepare the Form FC-GPR<\/li>\n<li>Get a SEBI registered Merchant Banker \/\u00a0accountant\u00a0certificate for the share valuation (indicating\u00a0the style\u00a0of arriving at\u00a0the value\u00a0of the shares issued to the persons resident outside India)<\/li>\n<li>Get\u00a0a corporation\u00a0Secretary certificate for the compliance\u00a0within the\u00a0format\u00a0laid out in\u00a0the shape\u00a0FC-GPR<\/li>\n<li>File Form FC-GPR with RBI through Company\u2019s Bank (AD Category I Bank) within 30 days from the date of allotment.<\/li>\n<li>Attachments required to file with Form FC-GPR,<\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Report obtains from\u00a0accountant\u00a0including Certificate.<\/li>\n<li>Company Secretary Certificate<\/li>\n<li>UIN copy of all inward remittances\u00a0that\u00a0shares are allotted. If UIN is applied for and yet to be received from RBI, attach copy of the UIN application filed with RBI through AD Category I bank<\/li>\n<li>Copy of FIRC\u2019s received for all inward remittances\u00a0that\u00a0shares are allotted<\/li>\n<li>Copy of PAS-3 filed with ROC as\u00a0a symptom\u00a0of allotment<\/li>\n<li>The Company\u2019s AD Category I bank, is required to certify the Form FC-GPR, after undertaking due verification and the same shall be forward to RBI<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ol start=\"8\">\n<li>RBI after due verification of FC-GPR will allot a FC-GPR\u00a0identification number\u00a0and communicate to\u00a0the corporate.<\/li>\n<\/ol>\n<p>This FC-GPR\u00a0number\u00a0is final approval of RBI for the Foreign investment. For any future repatriation of share sale proceeds, the FC-GPR\u00a0number\u00a0to be quoted.<br \/>\nIMP NOTE: Please note\u00a0that everyone\u00a0the Compliance\u00a0associated with\u00a0RBI is now through electronic mode only. Create your account of E-Biz, Fill\u00a0the shape\u00a0and send\u00a0textual matter\u00a0to AD, after verify\u00a0the shape, AD will be forwarded to RBI.<br \/>\nOnce\u00a0the shape\u00a0forwarded to RBI, RBI will give application number for all future correspondence or\u00a0to trace\u00a0the status of transaction.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"KEY_POINTS_OF_FOREIGN_CURRENCY_%E2%80%93_TRANSFER_OF_SHARES\"><\/span><span style=\"color: #000080;\"><strong>KEY POINTS OF FOREIGN CURRENCY \u2013 TRANSFER OF SHARES <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>No fee for filing of form FC-TRS, if filed within 60 days from the date of receipt\/date of payment of\u00a0the number\u00a0of considerations otherwise the RBI\/ AD Bank may impose the penalty for late filling by way\u00a0recently\u00a0Submission fee (LSF).<\/li>\n<li>The onus of filing form FC-TRS lies with the transferor\/transferee, whosoever is residing in India.<\/li>\n<li>The transferor\/transferee filing\u00a0the shape\u00a0has to\u00a0register itself with RBI-Firms portal before filing it.<\/li>\n<li>it&#8217;s\u00a0mandatory\u00a0to connect\u00a0the consent letter of both buyer and seller with form FC-TRS.<\/li>\n<li>The valuation of shares, required to be transferred, shall me made as per FDI norms.<\/li>\n<li>Sectoral Limits applicable on\u00a0the corporate\u00a0must be taken care of before transferring shares.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"REGISTRATION_ON_RBI-FIRMS_PORTAL\"><\/span><span style=\"color: #000080;\"><strong>REGISTRATION ON RBI-FIRMS PORTAL<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/ENTRY_FIRRMS..jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-13164\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/ENTRY_FIRRMS..jpg\" alt=\"ENTRY_FIRRMS.\" width=\"858\" height=\"268\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/ENTRY_FIRRMS..jpg 858w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/ENTRY_FIRRMS.-300x94.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/ENTRY_FIRRMS.-768x240.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/ENTRY_FIRRMS.-800x250.jpg 800w\" sizes=\"(max-width: 858px) 100vw, 858px\" \/><\/a><\/p>\n<p>Following 2 registrations are required on RBI FIRMS portal before\u00a0you&#8217;ll\u00a0file the form:<\/p>\n<ul>\n<li>The Indian entities (Companies, LLPs or startup) which have received the foreign investment\u00a0within the\u00a0past are required to register them by filing\u00a0this way.<\/li>\n<li>The window to enter\u00a0the data\u00a0within the\u00a0EMF was initially opened from 28\/06\/2018 to 20\/07\/2018 but the RBI again reopened the window from 01\/09\/2018, for those Indian entities, which were unable to upload their details under the EMF by submitting\u00a0the explanation\u00a0for delay\u00a0together with\u00a0authority letter (prescribed by RBI).<br \/>\nFor new Companies, <a href=\"https:\/\/www.caindelhiindia.com\/blog\/llp-amendment-bill-2021\/\">LLPs<\/a> or startup which\u00a0are\u00a0founded\u00a0after 30.07.2018, the EMF window\u00a0is often\u00a0open for them\u00a0with none\u00a0delay letter.<\/li>\n<li>After getting the Entity user registration, the entity required\u00a0to urge\u00a0the business user registration\u00a0yet. For this,\u00a0you would like\u00a0to go to\u00a0on https:\/\/firms.rbi.org.in\/firms\/\u00a0and choose\u00a0Registration Form for Business User and fill\u00a0the required\u00a0details\u00a0and fix\u00a0the authorization letter.<\/li>\n<\/ul>\n<p>Please note that this registration\u00a0also can\u00a0be availed by\u00a0a private\u00a0within the\u00a0case where a resident individual is required to report.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"TRANSFER_OF_SECURITIES\"><\/span><span style=\"color: #000080;\"><strong>TRANSFER OF SECURITIES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The following steps are required to be followed, in respect of successful registration of transfer of securities from Resident to Non-Resident &#8211;<\/p>\n<ul>\n<li>Receipt of consideration from non-resident.<\/li>\n<li>Obtain FIRC (Foreign Inward Remittance certificate) and KYC (Know your customer) of person residing outside India from AD Category-I bank.<\/li>\n<li>Submitting Security transfer deed and other documents required with\u00a0the corporate.<\/li>\n<li>Company registers the transfer.<\/li>\n<li>File FC-TRS on FIRMS RBI Portal\u00a0together with\u00a0the attachments. (As mentioned below in Annexure 1)<\/li>\n<li>Approval of FC-TRS by RBI.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>ANNEXURE 1<\/strong><\/span><\/p>\n<p>Following documents shall be attached while filling e-form FC-TRS:<\/p>\n<ol>\n<li>Consent letter for transfer\/receipt of consideration duly signed by\u00a0the client\u00a0and therefore the\u00a0seller.<\/li>\n<li>The shareholding pattern of the investee company (\u201cthe company, whose securities are transferring from one person to another\u201d) before and after the acquisition of securities by\u00a0someone\u00a0resident outside India.<\/li>\n<li>Certificate indicating fair value of securities from a\u00a0controller.<\/li>\n<li>Declaration from\u00a0the customer\u00a0to the effect that\u00a0he&#8217;s\u00a0eligible\u00a0to amass\u00a0shares\/compulsorily and mandatorily convertible preference shares\/debentures under FDI policy.<\/li>\n<li>Declaration from the non-resident transferee as per the format provided by the RBI in their SMF- user manual.<\/li>\n<li>Requests letter from the transferee\/transferor to register the transfer of securities in favor of investee Company.<\/li>\n<li>Board Resolution passed by the Investee Company, specifying the approval and acknowledgment to the securities transfer.<\/li>\n<li>Securities Transfer Deed in form SH 4.<\/li>\n<li>Security\u00a0contract, if any.<\/li>\n<li>FIRC\/KYC received from the AD Bank of transferor\/transferee.<\/li>\n<\/ol>\n<p><span style=\"color: #000080;\"><strong>VALUATION ASPECTS UNDER TRANSFER OF SECURITIES<\/strong><\/span><\/p>\n<ul>\n<li>The transfer is required to be made at a price, which is at or above fair value, as determined on the basis arm\u2019s length pricing.<\/li>\n<li>The minimum price shall be the fair value as determined by the\u00a0accountant.<\/li>\n<li>If the fair value, so determined, is\u00a0under\u00a0the face value of the securities of the Investee Company, then\u00a0in this\u00a0case the transfer shall be done at or above the face value per security.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/Fema-Compliance-in-India.-1536x804-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-13167\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/Fema-Compliance-in-India.-1536x804-1.png\" alt=\"\" width=\"1272\" height=\"654\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/Fema-Compliance-in-India.-1536x804-1.png 1272w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/Fema-Compliance-in-India.-1536x804-1-300x154.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/Fema-Compliance-in-India.-1536x804-1-1024x526.png 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/Fema-Compliance-in-India.-1536x804-1-768x395.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/03\/Fema-Compliance-in-India.-1536x804-1-800x411.png 800w\" sizes=\"(max-width: 1272px) 100vw, 1272px\" \/><\/a><\/p>\n<h1><span class=\"ez-toc-section\" id=\"AMOUNT_OF_LSF_PRESCRIBED_BY_RBI_FOR_DELAY_REPORTING\"><\/span><span style=\"color: #000080;\"><strong>AMOUNT OF LSF PRESCRIBED BY RBI FOR DELAY REPORTING<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<table style=\"height: 488px;\" width=\"871\">\n<tbody>\n<tr>\n<td width=\"127\"><strong>AMOUNT TO BE REPORTED (RS)<\/strong><\/td>\n<td width=\"195\"><strong>LATE SUBMISSION FEE AS PROVIDED IN % OF THE AMOUNT TO BE REPORTED<\/strong><\/td>\n<td width=\"264\"><strong>MAXIMUM CAP OF LSF<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"127\"><strong>UP TO 10 MILLION<\/strong><\/td>\n<td width=\"195\">0.05 %<\/td>\n<td width=\"264\">RS.1 MILLION OR 300% OF THE AMOUNT INVOLVED, WHICHEVER IS LOWER<\/td>\n<\/tr>\n<tr>\n<td width=\"127\"><strong>MORE THAN 10 MILLION<\/strong><\/td>\n<td width=\"195\">0.15 %<\/td>\n<td width=\"264\">RS.10 MILLION OR 300% OF THE AMOUNT INVOLVED, WHICHEVER IS LOWER<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" width=\"586\"><strong>* THE % OF LSF SHALL BE LEVIED AT DOUBLED RATE FOR EVERY TWELVE MONTHS.<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>We look forward for your valuable comments.\u00a0www.carajput.com<\/p>\n","protected":false},"excerpt":{"rendered":"<p>REPORTING OF FOREIGN INVESTMENT TO RBI Every Indian Company who receives FDI (Foreign Direct Investment)\u00a0must\u00a0report such FDI inflow\u00a0to order\u00a0bank of India. Therefore,\u00a0this is often\u00a0my\u00a0try and\u00a0clarify the procedure regarding report of FDI to RBI. INWARD REMITTANCE\u00a0AND\u00a0FIRC Receipt of foreign currency through VOSTRO ACCOUNT in company\u00a0checking account\u00a0(In USD) from overseas investor. Upon receipt of amount, Bank would\u00a0enkindle\u00a0purpose &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[560],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3053"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=3053"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3053\/revisions"}],"predecessor-version":[{"id":18326,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3053\/revisions\/18326"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=3053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=3053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=3053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}