Issue of shares to nri

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This query is : Resolved

Akshay Shah (Querist)

27 December 2011 Hello sir,

I have one query relating to issue of shares to NRI. The query is as below,

Facts of the case:

My client, a newly corporated private limited company has received remittance from one NRI for investment of shares of the Company.

The said NRI has paid money from his NRE account with Axis Bank in INR currency and the Company's banker is State Bank of India who has received the fund.
Now as per the requirement of the RBI & FEMA, The company shall inform to Regional office of RBI through Ad 1 category bank about receipt of remittance from NRI within 30 days from the receipt of the fund with FIRC which is provided by the Bank who receives the fund.

Now issue is the banker of the Company, SBI, the banker of the Company is denied to issue FIRC as it has received fund in indian currency only, not in foreign currency. Due to this problem, I cant intimate RBI as a copy of FIRC is required to be attached with form to intimate to RBI as one of the requirement.

So pls reply what should further i do to intimate RBI?

Will i get FIRC from the banker of remitter of the fund as first, it has received fund from NRI and then made a payment to the Company??

Pls reply on my query asap..
For more details, you can mail me - fcaakshayshah @ gmail.com

I would appriciate your prompt reply.