CHANGES IN FOREIGN DIRECT INVESTMENT: FDI REPORTING ( FC-GPR)
Have foreign investment, do you need to allot shares to NRI/ Foreign shareholders? Understand about the changes in FDI reporting
Initially, the filing of forms ARF ( Advanced Reporting forms) & FC GPR (Reporting of allotment of shares) used to file manually forms used for filing under FDI reporting
Considering the complex nature of data the RBI has decided to allow single form FDI reporting subsuming ARF ( Advance Reporting Form) FC GPR forms used for filing under FDI reporting
RBI vide its circular dated on June 7, 2018. (A.P (DIR Series) Circular No.30) has modified the FDI reporting procedures
With an objective of integrating the various reporting structures of foreign investments in India, a Single Master Form(SMF) is being introduced as an online reporting portal.
All Indian companies having FDI will mandatorily have to get registration completed with RBI and create an Entity Master on the provided link within 12th July 2018.
Complete foreign investments held by the company against which shares have been issued (reported and registration issued by RBI/reported pending registration/not reported) will have to update in the Entity master for FDI reporting
This interface will be available on RBI website www.rbi.org.in from June 28, 2018 to July 12, 2018 for registration of authorized personnel and creation of Entity Master FDI reporting
All Entities and companies are requested to register and create the Entity Master on the RBI site during the period from June 28 to July 12, 2018.
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
The Companies/LLPs having Foreign Direct Investments has to provide the details of its Foreign Investments in the dates mentioned above without fail. Those Companies /LLPs that are 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.