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
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.