Reporting of issue or transfer of shares in case of FVCI’s

1. ADVOCATES AND SOLICITORS
Reporting
Where an investment is made by a Registered Foreign Venture Capital Investor
Capital Undertaking either by way of subscription of
Schedule 6 of the Foreign Exchange Management
Outside India) Regulations, 2000
Regulations. Regulation 5 (5) provides
make investment in a Venture C
subject to the terms and conditions specified in schedule 6
an FDI investment and hence is not regulated by
According to a recent Notification
2013 issued by the Reserve Bank of India
Capital Investor acquires shares of an Indian company under
of Schedule 1 of the TISRO Regulations
only, as applicable. However, where the investment is under Schedule 6 of the
GPR/FC-TRS reporting is required. Such transactions would be reported by the custodian bank in the
monthly reporting format as prescribed by RBI from time to time.
This notification sets to rest the confusion
investments by filing FC-GPR/FC
which have an additional note under
form FC-TRS which reads as follows:
‘The investment/s made by SEBI registered FVCI is/are under FDI Scheme, in terms of
Notification No. FEMA 20 dated Ma
This further clarifies that if an FVCI
FC-TRS shall be filed. It is however
of a notification for the Annual Return on Foreign Liabilities and Assets
companies annually before July 31 as required under the
2013 (effective April 5, 2013).
This regulatory update provides general information existing at the time of preparation. The
news update and Alpha Partners neither assumes nor accepts
acting or refraining from acting as a result of any
advice must be taken before taking any action pursuant to it. This update does
original pronouncements and does not amount to legal or other professional advice. Please note
spam. In case you do not wish to receive the updates, please unsubscribe from the
and type “UNSUBSCRIBE” in the subject line.
ALPHA PARTNERS
ADVOCATES AND SOLICITORS
UPDATE
Reporting of issue or transfer of shares in case of FVCI
nvestment is made by a Registered Foreign Venture Capital Investor
either by way of subscription of fresh securities or transfer, it falls
the Foreign Exchange Management (Transfer or Issue of Security by
utside India) Regulations, 2000 (‘TISRO Regulations’) read with Regulation 5 (5)
provides that a Foreign Venture Capital Investor registered with
Capital Fund or an Indian Venture Capital Undertaking
subject to the terms and conditions specified in schedule 6. Therefore, such investment does not amount to
an FDI investment and hence is not regulated by Schedule 1 of the TISRO Regulations
otification no. RBI/2012-13/529 A.P. (DIR Series) Circular No.110
ued by the Reserve Bank of India, it is clarified that wherever a SEBI registered
acquires shares of an Indian company under Foreign Direct Investment
the TISRO Regulations, such investments have to be reported in
here the investment is under Schedule 6 of the TISRO Regulations
TRS reporting is required. Such transactions would be reported by the custodian bank in the
monthly reporting format as prescribed by RBI from time to time.
sets to rest the confusion for FVCI’s as to whether one is supposed to report their
/FC-TRS. This notification further provides amended forms
under para 3(4) and 5(a)(4) of form FC-GPR and para 4(4) and para 5(4) of
as follows:
‘The investment/s made by SEBI registered FVCI is/are under FDI Scheme, in terms of
Notification No. FEMA 20 dated May 3, 2000.’
FVCI’s is making an FDI investment, in such cases only
however recommended that such clarification should also be brought in by way
Annual Return on Foreign Liabilities and Assets which is required to be filed
panies annually before July 31 as required under the FDI Policy, presently governed by FDI Circular,
This regulatory update provides general information existing at the time of preparation. The
news update and Alpha Partners neither assumes nor accepts any responsibility for any loss arising to any person
acting or refraining from acting as a result of any material contained in this update. It is recommended that professional
before taking any action pursuant to it. This update does not substitute the need to refer to the
original pronouncements and does not amount to legal or other professional advice. Please note
spam. In case you do not wish to receive the updates, please unsubscribe from the mailing list by sen
in the subject line.
shares in case of FVCI’s
nvestment is made by a Registered Foreign Venture Capital Investor in an Indian Venture
falls under the purview of
ransfer or Issue of Security by a Person Resident
Regulation 5 (5) of the TISRO
enture Capital Investor registered with SEBI may
enture Capital Undertaking in the manner and
. Therefore, such investment does not amount to
TISRO Regulations.
A.P. (DIR Series) Circular No.110 dated June 12,
that wherever a SEBI registered Foreign Venture
Foreign Direct Investment Scheme in terms
to be reported in Forms FC-GPR/FC-TRS
TISRO Regulations, no FC-
TRS reporting is required. Such transactions would be reported by the custodian bank in the
supposed to report their
TRS. This notification further provides amended forms FC-GPR/FC-TRS
GPR and para 4(4) and para 5(4) of
‘The investment/s made by SEBI registered FVCI is/are under FDI Scheme, in terms of Schedule 1 to
, in such cases only Form FC-GPR or
also be brought in by way
is required to be filed by
governed by FDI Circular,
This regulatory update provides general information existing at the time of preparation. The update is intended as a
responsibility for any loss arising to any person
material contained in this update. It is recommended that professional
not substitute the need to refer to the
original pronouncements and does not amount to legal or other professional advice. Please note that this is not a
mailing list by sending a return mail