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Fema

dolly (xyz) (31 Points)

18 July 2013

Can anyone help me to know if RBI approval in form TS 1 is required to buyback shares from Non-resident shareholder or filing of FC TRS would suffice?

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jeets (CS ) (461 Points)
Replied 19 July 2013

If a company makes offer for buy back of its securities, permission from RBI will be required, if company intends to buy back shares from a non- resident. Application should be made to RBI giving all details, including details of valuation of shares. Remittances can be made only after receiving permisson from RBI

P C Agrawal (Registered independent director Past Ch) (8229 Points)
Replied 21 July 2013

FEMA Regulations do not provide for prior approval of RBI for buy back of shares from non-residents. You have to file FC-TRS with your banker who will report the transaction to RBI. After that you can advise revised shareholding pattern to RBI for information.