Buy Back of Shares from Non-Residents

[Sathyan Avinash]

Dear Professional Colleagues,

In case an Indian Company - completely held by non-residents goes through the process of buyback of securities, how will it be treated from FEMA perspective ?

Whether the same will be treated on par with a Transfer of securities from a Non-Resident to a Resident - in which case the need to file a Form FC-TRS will arise.

Awaiting your response.

With regards,

Sathyan G

“THE PESSIMIST COMPLAINS ABOUT THE WIND; 

THE OPTIMIST EXPECTS IT TO CHANGE; 

THE REALIST ADJUSTS THE SAILS.”

~ WILLIAM ARTHUR WARD

[CS.Omkar]

Dear Mr. Sathyan,

You are correct, ​buyback of shares from Non-Resident is considered as transfer of securities from a Non-Resident to a Resident for FEMA compliance and hence Form FC-TRS is required.

Regards...Omkar

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