FDI Reporting: AD Banks Can Now Approach Regional RBI for Delayed FC-TRS
Current · Source: Reserve Bank of India · RBI/2013-14/577 · issued 02 May 2014 · ~1 min read
Quick answerRBI has rationalised FC-TRS filing for NRIs acquiring shares on stock exchanges: investee company now files the form. AD banks can approach Regional RBI offices for delays beyond 60 days, instead of Central Office.
The rule, in the simplest words
When a non-resident (person living outside India) buys shares of an Indian company on a stock exchange (like the share market), the Indian company itself must fill and send the FC-TRS form (a report about the share transfer) to the bank.
If the FC-TRS form is submitted late (more than 60 days after the money is received), the bank can now ask the nearest Regional RBI office for permission, instead of having to go to the main RBI office in Mumbai.
For all other types of share transfers (not on a stock exchange), the old rules still apply: the bank checks the form and still goes to the main RBI office if it's late.
Banks must still send a monthly summary report of all FC-TRS forms to the RBI's main office in Mumbai, as before.
How it plays out — a real example
A forex & trade-finance officer in Indore receives a late FC-TRS form from a local company whose NRI (non-resident Indian) investor bought shares on the stock exchange. Instead of mailing the request to Mumbai, the officer simply walks to the Regional RBI office in Bhopal and gets the delay approved in two days, saving time and paperwork.
What changed
Previously, AD banks had to seek approval from RBI Central Office for FC-TRS forms submitted beyond 60 days. Now, for cases where NR investors acquire shares on stock exchanges per Circular No. 38 (Sept 6, 2013), the investee company must file FC-TRS, and AD banks can approach the Regional RBI office for delay regularization. Other cases remain unchanged.
What it means for you
This simplifies the process for AD banks by decentralizing delay approvals to Regional Offices, reducing turnaround time. Banks must ensure investee companies file FC-TRS for stock exchange acquisitions by NRIs, while maintaining existing consolidated reporting obligations.
What you must do
Update internal procedures to route FC-TRS delay regularization requests to RBI Regional Office for stock exchange acquisitions by NRIs.
Notify investee companies of their new responsibility to file FC-TRS for such transactions.
Continue consolidated monthly reporting as per Para 6.4 of Circular No. 16 (Oct 4, 2004).
Train staff on the revised filing and approval workflow.
Who it affects
AD Category-I banks, Investee companies receiving FDI via stock exchange acquisitions by NRIs, Non-resident investors (including NRIs) acquiring shares on stock exchanges
❓ Common questions
Who files FC-TRS for NRI stock exchange acquisitions now?
The investee company must file FC-TRS with the AD Category-I bank, not the transferor/transferee.
Where should AD banks approach for delayed FC-TRS beyond 60 days?
For stock exchange acquisitions by NRIs, AD banks approach the Regional Office of RBI's Foreign Exchange Department. For other cases, existing practice continues.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/577
A.P. (DIR Series) Circular No.127
May 2, 2014
To
All Category – I Authorised Dealer Banks
Madam/ Sir,
Foreign Direct Investment (FDI) in India –
Reporting mechanism for transfer of equity shares/ fully and mandatorily
convertible preference shares/ fully and mandatorily convertible debentures
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to the following extant instructions:
in terms of A.P. (DIR Series) Circular No. 38 dated September 6, 2013, a non-resident (NR) [including a Non Resident Indian (NRI)], who has acquired and continues to hold control in an Indian company in accordance with SEBI (Substantial Acquisition of shares and Takeover) Regulations, has been permitted, under the FDI scheme, to acquire shares of that company on a stock exchange in India through a registered broker;
in terms of paragraph 4 of A.P. (DIR Series) Circular No. 63 dated April 22, 2009 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 is cast upon the transferor / transferee, whoever is resident in India. Further, as per extant practice, the AD Category – I bank seeks approval from the Reserve Bank of India, Central Office before certifying the form FC-TRS received by them beyond the prescribed period of 60 days;
in terms of paragraph 6.4 of annex to A.P. (DIR Series) Circular No. 16 dated October 4, 2004 , the IBD/FED or the nodal office of the bank has to submit a consolidated monthly statement in respect of all the transactions reported by the branches together with copies of the FC-TRS forms received from the branches to Foreign Exchange Department, Reserve Bank of India, Foreign Investment Division, Central Office, Mumbai in a soft copy (in MS- Excel)
2. On a review, it has now been decided:
to rationalise the existing procedure, in cases where the NR investor including an NRI acquires shares on the stock exchanges in terms of the aforesaid A.P. (DIR Series) Circular No. 38 dated September 6, 2013 , the investee company would have to file form FC-TRS with the AD Category-I bank.
In order to facilitate operational convenience, it has been decided that the AD Category-I bank may approach Regional Office concerned of Reserve Bank of India, Foreign Exchange Department to regularize the delay in submission of form FC-TRS, beyond the prescribed period of 60 days and in all other cases, form FC-TRS shall continue to be scrutinised at AD bank level as per extant practice.
The AD banks shall continue to comply with the consolidated reporting requirement as stipulated in terms of Para 6.4 of A. P. (DIR Series) Circular No. 16 dated October 4, 2004.
3. These directions will become operative from the date of this circular.
4. All the other terms and conditions of the A.P. (DIR Series) Circular No. 16 dated October 4, 2004, A.P. (DIR Series) Circular No. 63 dated April 22, 2009 and A.P. (DIR Series) Circular No. 38 dated September 6, 2013 shall remain unchanged.
5. Authorised Dealers may bring the contents of this circular to the notice of their constituents and customers concerned.
6. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Rudra Narayan Kar)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/577 · issued 02 May 2014. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (AD Category-I banks, Investee companies receiving FDI via stock exchange acquisitions by NRIs, Non-resident investors (including NRIs) acquiring shares on stock exchanges), your first concrete step on “FDI Reporting: AD Banks Can Now Approach Regional RBI for Delayed FC-TRS” is: “Update internal procedures to route FC-TRS delay regularization requests to RBI Regional Office for stock exchange acquisitions by NRIs.” (RBI issued this 02 May 2014).
Circular: RBI/2013-14/577 -- FDI Reporting: AD Banks Can Now Approach Regional RBI for Delayed FC-TRS
Issued: 02 May 2014
Action required: Update internal procedures to route FC-TRS delay regularization requests to RBI Regional Office for stock exchange acquisitions by NRIs.
Action required: Notify investee companies of their new responsibility to file FC-TRS for such transactions.
Action required: Continue consolidated monthly reporting as per Para 6.4 of Circular No. 16 (Oct 4, 2004).
Action required: Train staff on the revised filing and approval workflow.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8859&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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