RBI through its Master Circular dated June 7th, 2018 has introduced Single Master Form (SMF) for all types of reporting in respect to Foreign Investment In India. The SMF would be filed online. SMF would provide a facility for reporting total foreign investment in an Indian entity as also investment by persons resident outside India in an Investment Vehicle.
Prior to the above implementation of the SMF each Indian entity will be required to report the total foreign Investment in a Specified Format.
This reporting will be done online from 28th June to 12th July 2018. The interface will be available on RBI website www.rbi.org.in
This has to be filled up by the company /LLP/start-ups which have foreign investment in them.
In order to enable compliance of the above reporting get handy of the below mentioned information :
1. Registration number, if any, as allotted by RBI (in case of FDI received by the company/LLP earlier);
2. Whether the company/LLP is under investigation by Directorate of Enforcement/CBI or any other investigative agency for violation of FEMA, 1999;
3. A detailed List of Shareholders / Capital Contribution in LLP mentioning;
a. Status of the Shareholder : NRI/FPI/Others/Direct FDI/ Indirect FDI;
b. No of shares (on a fully diluted basis);
c. Percentage Holding;
Reporting will be done for the below listed forms in the specified formats. The final form, when hosted, will be available in the Master Direction-Reporting under FEMA, 1999
1. Form FC-GPR – issue of capital instruments by an Indian company to a person resident outside India
2. Form FC-TRS – transfer of capital instruments between a person resident outside India and a person resident in India
3. Form LLP-I – FDI in LLP through capital contribution and profit shares
4. Form LLP-II – Disinvestment/ transfer of capital contribution and profit shares in LLP
5. Form ESOP – issue of ESOPs / sweat equity shares/ shares against exercise of ESOP by an Indian company to an employee resident outside India.
6. Form CN – issue or transfer of convertible notes
7. Form DRR – issue/transfer of Depository Receipts
8. Dorm DI – Reporting of downstream investment (indirect foreign investment) in acompany or LLP
9. Form InVi- Reporting of investment by a person resident outside India in an Investment vehicle
In case of non- compliance, Indian entities will not be able to receive foreign investment and henceforth, will be defaulter under the provisions of the Foreign Exchange Management Act, 1999 and regulations made thereunder.
The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Author Bio
Please confirm that what is the basis of classifying investor into FPI , NRI , Others as per point no 1.3 of annx.
Further what is the difference between Foreign Portfolio Investment and Indirect foreign investment.
A foreign shareholder having status of company will be classified into FPI or NRI
Thanks