Transfer of Shares

Form FC-TRS is required to be filed for transfer of capital instruments (Equity Shares, Fully and Compulsory Convertible Securities) of an Indian Company in the following cases:

• When the transfer is made between a person resident outside India (repatriable basis) and a person resident outside India (non-repatriable basis)
• When the transfer is made between a person resident outside India (repatriable basis) and a person resident in India.

Transfers of eligible capital instruments between residents and non-residents are generally reported in Form FC-TRS through the authorised dealer bank and the RBI reporting workflow. A common question is who bears the reporting responsibility in a given transaction.

Under the current reporting framework, the responsibility generally lies with the resident transferor or resident transferee, as applicable. In certain non-repatriation situations, the responsibility may rest with the person resident outside India holding the instruments on a non-repatriable basis.

Form FC-TRS is generally required to be filed within 60 days of the transfer of capital instruments or receipt or remittance of funds, whichever is earlier, subject to the prevailing FEMA and RBI reporting rules.