Reserve Bank of India vide RBI/2013-14/366 A. P. (DIR Series) Circular No.72 dated November 11, 2013 has reviewed the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 and decided to waive off the requirement of obtaining No Objection Certificate which was earlier required to be obtained from the respective financial sector regulator/regulators of the investee company as well as transferor and transferee entities in the cases of transfer of shares from Residents to Non-Residents where the investee company is in the financial services sector. Accordingly, no such NoC(s) will be needed to be filed along with form FC-TRS.

The circular however clarified that any 'fit and proper/ due diligence' requirement as regards the non-resident investor as stipulated by the respective financial sector regulator shall have to be complied with.