RBI Compliances - Subscription of Shares

Foreign Exchange Management Act deals with the management of inflow and outflow of the foreign exchange. An Indian company receiving investment from outside India for issuing shares / convertible debentures / preference shares under the FDI Scheme, should report the details of the inflow to the Reserve Bank not later than 30 days.

Reporting of issue of shares:

After issue of shares/convertible debentures/preference shares, the Indian company has to file Form FC-GPR, not later than 30 days from the date of issue

Transfer of Shares:

For transfer of security from a resident to a non-resident, the relevant form is FC TRS which needs or be filed within the due date specified.

The annual filing is Part-B of FC-GPR which should be filed on an annual basis with the Reserve Bank. This filing has to be done in the month of June every year, for all outstanding investment by way of FDI as well as Portfolio / other investments and by way of re-invested earnings for the previous April to March period.

For example, all Indian companies who have received FDI from foreign investors during the period April 2016 to March 2017, have to report in Part B of Form FC-GPR in the month of June 2017, along with their retained earnings during the period.

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