1. Relevant Provision
Schedule 1 to Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations.
2. When these provisions attract?
In case if investee company receiving FDI for issue of shares
Within 180 days of receipt of foreign investment and requires filling of FCGPR with RBI regarding receipt of foreign investment and issue of shares.
4. Applicability of section 42
The Provisions of Section 42 of the Companies Act, 2013 shall also applicable to a company receiving share application money from foreign investor as well
5. Format of Report
6. Certificate from Professionals
At the time of filling FCGPR the investee company shall be required to submit a certificate from practicing professional like PCS/PCA to the effect that the provisions of section 42 of Companies Act, 2013 have been complied with.
7. Penalty in case of Non compliance
In case of delay beyond the prescribed time period shall be liable to penalty of 1% of the total amount of investment subject minimum of Rs. 5,000 and Maximum of Rs/. 5,00,000 per month or part for 1st six months of delay and twice that rate thereafter, to be paid online into a designated account in RBI.
8. Single Master Form (SMF)
Introduced by RBI Circular No 30 dated 07th June 2018
To integrate the extant reporting structures of various types of foreign investment in India on online format.
10. Integrated filling
Fillings in respect of foreign investment will be integrated into one single form known as SMF and all form for reporting foreign investments like FC-TRS, FC-GPR, Form for reporting of ESOPs, downstream investments, Form LLP-I, Form LLP-II, Form DRR etc.
11. Entity Master Form (EMF)
RBI introduced an system called Entity Master Form to Indian entity, to filled the details of total foreign investment received by them as on the date of creation of EMF account.
12. Mandatory opening of Account
For above purpose Indian entities are now required to open SMF account and EMF account on FIRMS Portal i.e Foreign Investment Reporting and Management System.
Opening of EMF Account on FIRMS Portal.
Entities can open 1 EMF portal on FIRMS portal
After EMF Account created entity can create SMF account on FIRMS Portal. SMF is an AD Bank specific account.
The AD bank to whom application filed has a maximum 5 days to approve or reject the application and forward the same to RBI
Intimation shall be given through email to the Entities by the RBI.