Query NRI BONUS ISSUE

[ishan jain]

Dear Sir,

 

One of my client is issuing bonus shares and the company is having NRI shareholder's also and they are alos getting Bonus Shares.

 

Now company have to file Form FC-GPR to intimate it to RBI but my query is whether we have to file Valuation certificate of shares of the CA or not??

 

As per me it is not required because shares are being issued as a bonus. But still need some clarification on that.

 

Please do the needful.

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Thanks and Regards

ISHAN JAIN

[Rajagopal Kannan]

Form FC-GPR is required to be filed only when the shares are issued to NRIs under Foreign Direct Investment.  In the case of shares held by NRI under portfolio management scheme, Form FC-GPR need not be filed. 

 

Regards

Raj

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[R V Seckar]

Hello,

 

If bonus shares are issued to a non-resident shareholder, then , the company has to file FC-GPR and also arrive at valuation of shares at DCF method for the purpose calculating bonus share valuation for foreign investor .

 

For Indian investor , no such valuation is needed.

 

R.V.Seckar

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[Shraddha sudrik]

Dear Seckar Sir,

 

But i have one little query since the  bonus shares are free there is no foreign exchange money is coming in India so is it necessary to file FC-GPR form?

[ishan jain]

Dear Sir,

 

It means that we have to give valuation certificate for bonus allotment also??

On Mon, Mar 11, 2013 at 5:05 PM, R V Seckar <rvsek...@gmail.com> wrote:

[ishan jain]

Ms. Shraddha,

 

FC-GPR is required but how can we calculate the valuation of shares for the bonus on DCF method???

[R V Seckar]

Yes. But increases the foreign currency liability to India and hence reporting is necessary.

[R V Seckar]

Yes.

 

For any issue of shares either FDI or bonus or rights shares to foreign investors , DCF method of calculation is necessary .

 

R.V.S

[Shraddha sudrik]

thanks seckar sir

[ishan jain]

Sir,

 

this will be given on the date of Board Meeting for Allotment of shares and in DCF valuation for entitlement of binus will be written.

 

Please correct me if I am wrong.

[R V Seckar]

Yes. Date of allotment will be date of the board meeting.

 

R.V.S

[csdeves...@gmail.com]

Sent from my iPhone

[Rajan Antony]

Aftet filing FCGPR with RBI for bonus issue, what is the procedure to be followed by the company with RBI

Siluvairajan CS.
Mumbai