Wednesday, 18 July 2018
One-time FDI Reporting
A circular was released by Reserve Bank of India (‘RBI’) on June 7, 2018 in which RBI is proposing that with the objective of integrating the reporting structures of various types of foreign investment in India, it will introduce a Single Master Form (“SMF”) which shall be a consolidated form for reporting any foreign investment received by an Indian company to the Reserve Bank of India.
Prior to implementation of SMF, RBI has provided an interface to the Indian entities to input the data on total foreign investment in the form FIRMS (Foreign Investment Reporting and Management System). The interface is available on RBI website () from June 28, 2018 to July 12, 2018 (now extended up to July 20, 2018). Indian entities holding any foreign investment have to provide the details thereof using the Form FIRMS on or before the dates provided above. Indian entities not complying with this pre-requisite will not be able to receive foreign investment (including indirect foreign investment) and will be non-compliant with Foreign Exchange Management Act, 1999 and regulations made thereunder.