Query on filing of FIRC & FCGPR

[dastagiri dudekula]

Dear Members,


I have query on fling of FIRC & FCGPR.

Recently we have received an investment from FVCI. which is registered with SEBI and our new investor is saying that investment made by FVCI does not require to file FIRC & FCGPR

 

Is there any such exemption for FVCI for not filing FIRC & FCGPR ?

 

Kindly clarify and provide any supporting provisions or document.

 

 

Thanks & Regards

 

D.Dastagiri

 

[anandteerth hipparagi]

Dear Member

There is no such exemption given to FVCI. You have to report the FDI in Form FC-GPR.

Regards,

Anandteerth

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Regards
CS Anandteerth

Simple Words: "Be Positive"

[balaram desina]

Dear Anand,

 

 

Thank you for your immediate reply. query has been posted our colleague.

 

 

We too verified all the RBI Ciruculars and contacted our Authorised Bankers also. Even our bankers are also saying the same that it is not required to File.

 

 

What our investor is saying that they have to report to the RBI and SEBI as FVCI. so reporting agian by the company will become duplication.

 

 

Actually it is our obligation to file FIRC & FC-GPR.

 

 

So, kindly provide any supporting Circular or information to justify our selves with the investor that it is mandatory to file.

 

 

 

Thanks in advance.

 

 

Regards,

 

CS. D. Balaramakrishna

91-9393856235

Thanks & Regards

CS.D.Balaramakrishna

MBA,LLB,MA(HR),ACS
Company Secretary

91-9959850156, 9393856235

 

 

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[anandteerth hipparagi]

Dear Balaram,

As per Consolidated FDI Policy:

-- "FDI‘ means investment by non-resident entity/person resident outside India in the capital of an Indian company.

--Person resident in India‘ means -
(i) a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include –
    (A) A person who has gone out of India or who stays outside India, in either case-
         (a) for or on taking up employment outside India, or
         (b) for carrying on outside India a business or vocation outside India, or
         (c) for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period;
    (B) A person who has come to or stays in India, in either case, otherwise than-
         (a) for or on taking up employment in India; or
         (b) for carrying on in India a business or vocation in India, or
         (c) for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period;

(ii) any person or body corporate registered or incorporated in India,

(iii) an office, branch or agency in India owned or controlled by a person resident outside India,

(iv) an office, branch or agency outside India owned or controlled by a person resident in India.


-- Person resident outside India‘ means a person who is not a Person resident in India as mentioned above.


-- Foreign Venture Capital Investor‘ (FVCI) means an investor incorporated and established outside India, which is registered under the Securities and Exchange Board of India (Foreign Venture Capital Investor) Regulations, 2000 {SEBI(FVCI) Regulations} and proposes to make investment in accordance with these Regulations

--7.2.2 Reporting of issue of shares
(i) After issue of shares (including bonus and shares issued on rights basis and shares issued under ESOP)/fully, mandatorily & compulsorily convertible debentures / fully, mandatorily & compulsorily convertible preference shares, the Indian company has to file Form FC-GPR, enclosed in Annex-1, not later than 30 days from the date of issue of shares.

-- Form FC-GPR , point No. 3 (:Details of the foreign investor / collaborator), Point No. 5 (Post issue pattern of shareholding) FVCI is also one of the options.

Hence, even though specifically nowhere it is mentioned that for an investment by FVCI form FCGPR should be filed, FVCI is considered as Person Resident outside India. And any investment be person resident outside India should be reported to RBI by filing form FC-GPR.

From above points it is evident that form FC-GPR has to be filed even though it is a FVCI.

I have a practical experience of filing form fc-gpr where Walden Investments VI, Mauritius a FVCI invested in one of our client companies.

Regards,

 Anandteerth

[balaram desina]

Dear Anand,

 

 

Thank you so much for your detailed clarification with practical case.

 

 

Regards,

 

 

CS. D. Balaramakrishna

91-9393856235

On Thu, Jun 14, 2012 at 5:20 PM, balaram desina <balara...@gmail.com> wrote: