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KYC for FC-GPR

jeets (CS ) (461 Points)

05 May 2011

Hello Expert,

I have filed a FC-GPR with AD. Now AD has reverted back with few queries

1- AD is asking for KYC-- Do we need to provide the AD with KYC. Normally its the AD who attaches KYC and submits the FC-GPR with RBI ( The international remitter and Indian counterpart is the same bank)

2- Do we need to attach CA certificate with FC-GPR, Its a new company a wholly owned subsidary and the money is remited in order to issue and allot share at the stage of incorporation. There is no data to value.

Any one, please reply...........

Thanks

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12 Replies

valji (Accounts manager-MBA) (2150 Points)
Replied 05 May 2011

when the remittance come you have to inform to RBI within 60 days with KYC norms ,the KYC information collect your AD onbehalf of you

the RBI issue unique identication After submitting the information

then you have to submit form Fc-gpr with CA CERTICATE for price guidelines ,cs cerifiace for following rule of FEMA

Attached File : 32 kyc norms.pdf downloaded: 658 times

Charu Srivastava (Company Secretary) (4210 Points)
Replied 06 May 2011

I endorse valji view..

Shridhi Jain (Company Secretary) (1678 Points)
Replied 06 May 2011

FCGPR is a form file wen shares are issued to foreign party.

You have to ask for KYC from the foreign party. He/she will arrange it with his/her bank from where money is transferred to India.

Suppose foreign party's bank is Calyon Bank, then it has to arrange KYC from calyon bank.

Secondly, you have to attach Share Valuation Certificate given by CA. No matter if the company is doing losses n losses (I mean to say nothing matter, you have to arrange for certificate)

Shridhi Jain (Company Secretary) (1678 Points)
Replied 06 May 2011

If there is no data then your CA will qualify his certificate to the same effect. Its mandatory.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 06 May 2011

Originally posted by : jeets
	Hello Expert, I have filed a FC-GPR with AD. Now AD has reverted back with few queries 1- AD is asking for KYC-- Do we need to provide the AD with KYC. Normally its the AD who attaches KYC and submits the FC-GPR with RBI ( The international remitter and Indian counterpart is the same bank) 2- Do we need to attach CA certificate with FC-GPR, Its a new company a wholly owned subsidary and the money is remited in order to issue and allot share at the stage of incorporation. There is no data to value. Any one, please reply........... Thanks

Dear Jeets,

Regarding your first question, this is to inform you that KYC is the document which is provided by the Bank you not need to include KYC with form FC-GPR.

Secondly, followign certificates are required to be attached with Form FC-GPR:-

(i) A certificate from our Company Secretary certifying that

(a) all the requirements of the Companies Act, 1956 have been complied with;

(b) terms and conditions of the Government approval, if any, have been complied with;

(d) the company has all original certificates issued by authorised dealers in India evidencing receipt of amount of consideration in accordance with paragraph 9 of Schedule 1 of Notification No. FEMA 20/2000-RB dated May 3, 2000 as amended from time to time;

(ii) A certificate from Statutory Auditors / Chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident outside India.

Furthermore, copies of FIRCs are also requried to be attached with Form FC-GPR which were already provided by the Bank.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 06 May 2011

The information of inward remittance and attotment of shares is required to be informed to the RBI within 30 days of the receipt and allotment of shares in form FC-GPR.

SkDash (CS (Member) CWA (Final)) (909 Points)
Replied 06 May 2011

jeet-

Generally- the Co fills the KYC form (the bank has to sign in the kyc form) and send it along with FCGPR.

In case you are a new co and allotting initial shares, then you can write a letter mentioning the said fact and in such a case, RBI will not insist for the CA certificate.

Kamal Dhareva (Chartered Accountant) (45 Points)
Replied 07 May 2011

Hello Ankur,

The Company has to ask for the KYC Form from the remitting party. The remitting party will obtain it from its bank who has remitted the money to India. It is compulsory to attach the same with the FC GPR Form.

Also, since the company is new, the CA Certificate shall contain this fact and will also need to mention that the price has not been arrived at by Discounted cash flow method in the absence of future projections.

Regards

Kamal

Ankur Shah (Partner) (22 Points)
Replied 07 May 2011

CA certificate is not required, if the payment is for newly formed company. However, if the payment is amde forexisting JV/WOS than CA certificate is inevitable.

Kamal Dhareva (Chartered Accountant) (45 Points)
Replied 07 May 2011

Hi Ankur,

The AD will insist on the CA Valuation Certificate. It is necessary for the RBI to know that since the company is a new company based on the certificate of chartered accountant and as such fair value is the face value.

The Consolidated FDi Policy states that,

b. the fair valuation of shares done by a SEBI registered Category - I Merchant Banker or a

Chartered Accountant as per the discounted free cash flow method, where the shares of

the company is not listed on any recognised stock exchange in India ;

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 07 May 2011

The same would be certified by the CA in his certficate....

Prateek Arora (Fresher) (21 Points)
Replied 17 December 2014

Originally posted by :

Hello Expert,
I have filed a FC-GPR with AD. Now AD has reverted back with few queries

1- AD is asking for address of the indian company is not given in the FIRC and Complete address of the investor is not appearing in the FIRC.

2- The foreign investor has shifted their Registered office from one place to another place so address mention in the FIRC is different from the address mention in the KYC..........

Any one, please reply what should i do...........

Thanks