FCTRS Filing with RBI

FCTRS Filing Introduction

The full form of FCTRS is Foreign Currency Transfer of Shares. It is required to be filed in the cases where from a resident to a non-resident/non-resident Indian, transfer of shares of Indian Company occurs and vice-versa. Form FCTRS is filed at FIRM's portal.

Steps to File FC-TRS

Step 1:   Registration for Business User
The applicant reporting for the foreign transaction in SMF at FIRMS. The entity who has authorised a individual to report the transaction need to register the individual as a business user. If the person wants to act as a BU for another entity, he must register himself separately.

For registration as a business user, fill the form and attach authority letter as an attachment at FIRM portal https://firms.rbi.org.in

After BU submits the registration form, it will have to be verified by the AD Bank Branch concerned. The approval/ rejection would be communicated through email notification to the BU.

Step 2:   Logging in to Firms
BU will be able to login using his username and default password, received via an email.

Step 3:   Logging in to SMF and reach out to your workspace.
At the dashboard, under the menu tab, Single Master Form is there.

Step 4:   Select the Return Type
Return Type will have a drop-down menu, select Form FC-TRS among them.

Step 5:   Common Investment Details
FCTRS Form has four tab- Common details, Particular of transfer, Remittance detail and Shareholding Patterns. Fill the detail information of transfer such as type of capital instruments, no. of instruments, conversion ratio, number of equity shares on a fully diluted basis, face value of equivalent shares, transfer price per instrument, the total amount of consideration and the fair value of the instruments at the time of transfer (in case of gift this would be kept blank) and remittance details amount such as Mode of payment, Name of AD bank, Address of the AD bank, Amount remitted/received in Rs, Whether and Tranche number, Whether the remitter is different from a foreign investor and submit the form.

Documents Required

1. Declaration by non-resident transferor/ transferee
2. Transfer agreement along with the consent letter between buyer and seller. 
3. Valuation certificate as per FEMA 20 (R)
4. In case of sale by a non-resident, acknowledgment of FC-GPR/ FC-TRS as applicable.
5. FIRC /Outward remittance certificate and KYC.
6. Relevant regulatory approvals, wherever applicable.