New System for Annual Return on Foreign Liabilities and Assets Reporting (FLAIR) by Indian Companies
Earlier the Foreign Exchange Department of Reserve Bank of India stipulated that all Indian companies which have received FDI and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year, should file the annual return on Foreign Liabilities and Assets (FLA) in the soft form which can be duly filled-in, validated and sent by e-mail to the Reserve Bank by July 15 of every year.
The present email-based reporting system for submission of the FLA return will be replaced by the web-based system online reporting portal to enhance the security-level in data submission and further improve the data quality.
The main features of the revised Foreign Liabilities and Assets Information Reporting (FLAIR) system:
1. A web-portal interface https://flair.rbi.org.in to the reporting entities for submitting “User Registration Form”.
The successful registration on web-portal will enable users to generate RBI-provided login-name and password for using FLA submission gateway and would include system-driven validation checks on submitted data.
2. The form will seek investor-wise direct investment and other financial details on fiscal year basis.
3. System-generated acknowledgement receipt upon successful submission of the form.
4. If required data can be revised.
5. User can View/download the information submitted.
6. FLA information for earlier year/s after receiving RBI confirmation on their request email.
7. The existing mechanism of email-based submission of FLA forms will be discontinued.
Please note that these directions will come into force with immediate effect and would be applicable for reporting of information for the year 2018-19.
Further note that Indian entities not complying with new system will be treated as non-compliant with Foreign Exchange Management Act, 1999 and regulations made there under.
(The author is Practising Company Secretary and can be reached at 8375877464 or E-mail : email@example.com)