FC-GRP to be filled or not?

Hello,

My observation on the subject is as follows:

As per FEM (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000, as amended from time to time:

An Indian Company shall report inflow of consideration amount (towards share subscripttion) within 30 days of such receipt with RBI.

Please see the  clause 3 (specifying permissible credits to NRE A/c) of FEM (Deposit) Regulations, 2000 as amended from time to time:

Filing of FC-GPR

As per FEM (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000, as amended from time to time:

Form FC-GPR is required to be filed with RBI within 30 days of issue/allotment of shares/convertible debentures by an Indian company to a PROI(includes NRI as well). The event necessitating filing of Form FC-GPR is allotment in PROI's and is nowhere dependent upon mode of remittance of  share subscripttion amount.  

Thus the Company is required to file form FC-GPR within 30 days of allotment  of shares to NRI's favour even the allotment is made on non-repatriation basis.

R.V.Seckar

https://rvsekar.blogspot.com/

https://rvseckarfema.blogspot.com/