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?
2 Replies
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 Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(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.
Recent Topics
- LUT Number on Invoices
- HSN Summary B2B and B2C
- DRC-01 Demand Notice for filing GSTR-9 Wrongly
- Income Tax for freelancing services
- Income Tax Return Filing Reg
- DRC 03 payment method
- GST Registration for Service Providers
- Tax for individual freelancing service providers
- LUT Number confusion! ARN or Reference Number
- Section 44ADA Query - 75 Lakh Limit Clarification
Related Threads
CAclubindia
