Procedure of Transfer of shares www.taxpertpro.com

1. Procedure of transfer of shares from Resident to Non Resident
Under the Foreign Exchange management Act, 1999
(1) Form of Transfer:- Form FC TRS to be filed with the authorized dealer in quadruplicate
(2) Documents:- Following documents are required to be filed with the Form FC TRS
a. Consent Letter duly signed by the seller and buyer or their duly appointed agent
and in the latter case the Power of Attorney Document.
b. The shareholding pattern of the investee company after the acquisition of shares
by a person resident outside India.
c. Certificate indicating fair value of shares from a Chartered Accountant.
d. Copy of Broker's note if sale is made on Stock Exchange.
e. Declaration from the buyer to the effect that he is eligible to acquire shares /
Compulsorily and mandatorily convertible preference shares / debentures under
FDI policy and the existing sectoral limits and Pricing Guidelines have been
complied with.
f. Declaration from the FII/sub account to the effect that the individual FII / Sub
account ceiling as prescribed has not been breached.
(3) Form of transfer along with FC- TRS (duly acknowledged from the designated AD branch) be
submitted to company
(4) Method of payment: Through normal banking channels. In case the buyer is a NRI, the
payment may be made by way of debit to his NRE/FCNR (B) accounts.
(5) Valuation:-The valuation to be taken on the basis of CA valuation in cases where shares are
not listed. Certificate to that effect.
(6) KYC Check:-The sale consideration in respect of equity instruments purchased by a person
resident outside India, remitted into India through normal banking channels, shall be
subjected to a KYC check
(7) Period:-The Form has to be filed within 60 days from the date of receipt of the amount of
consideration.
(8) Onus:-The onus of submission of the form FC-TRS within the given timeframe would be on the
transferor / transferee, resident in India.
(9) The Transfer can be done subject to the sectoral limits.
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