FCTRS
(Foreign Currency – Transfer of Shares)
An interactive guide to the essential RBI form for reporting transfers of Indian company shares involving non-residents.
Why is FCTRS Filing Important?
FCTRS is the RBI's mechanism for overseeing share transfers to ensure they comply with FEMA regulations. The filing requirement is triggered by three specific scenarios. Click on each tab below to learn more about them.
The Filing Process: Who & When
The responsibility for filing FCTRS shifts depending on the parties involved in the transaction. Regardless of who files, the deadline is strict and must be followed.
Who is Responsible for Filing?
If a Resident is Involved:
The Indian Resident (whether buyer or seller) is responsible for ensuring the form is filed, typically with assistance from their Authorized Dealer Bank.
If Between Two Non-Residents:
The Indian Company whose shares are being transferred must report the transaction.
The 60-Day Window
The FCTRS form must be filed within 60 days from the date of the transfer of shares or convertible debentures.
Consequences of Non-Compliance
Like all FEMA regulations, the FCTRS filing requirement is mandatory. Failure to comply can have serious repercussions for the parties involved.
Penalties & Adverse Actions
Failure to file FCTRS accurately and within the 60-day window can lead to significant penalties and other adverse actions from the RBI. Adhering to this requirement is essential for legal compliance and smooth foreign exchange transactions.
In a Nutshell
FCTRS is the mandatory form for reporting any transfer of an Indian company's shares that involves a non-resident. It helps the RBI maintain records and ensure compliance. Timely filing is key to avoiding penalties.