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Saturday, March 15, 2008

RBI proposal of amending form FCGPR for your comment

Dear All,

The Reserve Bank of India, today placed on its website for public comments, draft format for reporting ( ie Form FCGPR) foreign direct investments (FDIs).

In the revised form the class of investors has been broadened to include several new entities viz., foreign nationals, foreign companies, foreign institutional investors (FIIs), foreign venture capital investors (FVCIs) registered with SEBI, foreign trusts, private equity and other funds, pension/ provident funds, partnership / proprietorship firms, financial institutions, NRIs / PIOs. Secondly, the details of investment received in units of venture capital funds from FVCIs are proposed to be separately captured. Thirdly, Part B of the form has been modified so as to capture breakup of the details of foreign investor class. The date of filing of Part B of the form has been extended from June 30 of every year to July 31.

The Reserve Bank has invited feedback from all interested stakeholders on the draft format of FC-GPR. The feedback may be sent to the Chief General Manager, Foreign Exchange Department, Reserve Bank of India, 11th Floor, Shahid Bhagat Singh Road, Mumbai – 400 001 on or before March 31, 2008. The feedback may also be sent by fax (022-22610623/30) or by email

It may be noted that Foreign Direct Investments (FDIs) in India are permitted under the automatic and government/approval route. An Indian company issuing shares and convertible debentures to non-residents under automatic and government / approval routes is required to submit the details of the investment in a two-stage reporting procedure. In the first stage, receipt of funds has to be reported to the Reserve Bank of India within 30 days of receipt. In the second stage, the company has to file form FC-GPR with the Reserve Bank within 30 days from the date of issue of shares / convertible debentures.

In order to capture the details of FDI in a more comprehensive manner, form FC-GPR was revised in April 2007, in terms of which the AD Category – I bank in India receiving foreign remittance for issue of shares was required to obtain a Know Your Customer (KYC) report in respect of the foreign investor from the overseas bank remitting the amount. In the wake of the recent policy changes in foreign investment and also taking into account the suggestions and feedback received from various entities, form FC-GPR has now been further modified.

Link is available in this mail to access new form, respected members can give their comment to RBI in this regard.

Thanks & Regards



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