Friday, June 8, 2018

RBI INTRODUCES CHANGES IN THE ECB MONTHLY REPORTING THROUGH ECB 2 RETURN


RBI INTRODUCES CHANGES IN THE ECB MONTHLY REPORTING THROUGH ECB 2 RETURN

R V Seckar practising company secretary , 09848915177 rvsekar2007@gmail,


CHANGES IN PART E.1  and E.2 OF ECB 2 MONTHLY RETURN

It has been decided to capture the details of the hedges for ECBs through a simplified format of ECB 2 Return. Part E of the Return, accordingly, is modified so as to include only standard information on hedged/unhedged ECB exposure (Annex).

Details of hedging in Part E.1 of the Return and foreign exchange earnings and expenditure in Part E.2 of the Return should be furnished in additive format.

Further, for reporting in respect of natural hedge, provisions contained in paragraph 2 (iii) of A.P. (DIR Series) Circular No. 15 dated November 07, 2016 should be followed.


R V Seckar practising company secretary , 09848915177 rvsekar2007@gmail,

REVISED FORM ECB-2 WILL BE WITH EFFECT FROM END OF JUNE 2018

 Revised monthly reporting format of ECB 2 Return would be applicable from month-end June 2018.

Any Lapse will be considered as a Contravention under FEMA

It is reiterated that any lapse at the time of reporting through this return and / or failure to adhere to the time line of its submission and / or any lapse at the time of reporting through Form 83 is a contravention of the provision of Foreign Exchange Management Act, 1999 (42 of 1999).



PROVIDING PRACTICING COMPANY SECRETARIAL SERVICES

For more details, please click the following link




Thursday, June 7, 2018

RBI INTRODUCES SINGLE MASTER FORM (SMF) FOR REPORTING Foreign investment in India(FDIs) .


RBI INTRODUCES SINGLE MASTER FORM (SMF)  FOR REPORTING Foreign investment in India(FDIs) .

 R V Seckar , Practicing Company secretary rvsekar2007@gmail.com 09848915177


The Main Objective of SMF FORM

With an objective of integrating the extant reporting structures of various types of foreign investment in India, RBI will introduce a Single Master Form (SMF).

The SMF would be filed online.

SMF for Direct FDI and through Investment Vehicle Route

 R V Seckar , Practicing Company secretary rvsekar2007@gmail.com 09848915177


SMF would provide a facility for reporting total foreign investment in an Indian entity {as defined in Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations 2017, dated November 7, 2017}, as also investment by persons resident outside India in an Investment Vehicle.

Prior to implementation, RBI will provide an interface to Indian entities to input data on foreign investment in specified format between June 28, 2018 to July 12, 2018.


OFFERING SERVICES AS PRACTICING COMPANY SECRETARY
TO KNOW MORE ABOUT FOR ALL YOUR COMPANY SECRETARIAL NEEDS , PLEASE CLICK THE FOLLOWING LINK:


NON-COMPLAINT INDIAN COMPANIES 

CANNOT RECEIVE FDIs

Entities not complying with this prerequisite will not be able to receive foreign investment and will be non-compliant with FEMA,1999.

The entities may be in readiness with the requirements to be provided in the Entity Master at Annex 1. The format of the SMF is at Annex 2. The final form, when hosted, will be available in the Master Direction-Reporting under FEMA, 1999.

ENTITY MASTER DATA -Annex I

1. All Indian Entities needs to provide till date all the foreign investments received by them which will be called Entity Master Data and the format is provided in Annex 1 of said notification.

Subsequent Investments in Annex 2


2. For any subsequent foreign investments, an Integrated reporting structure of various types of foreign investment introduced which will be called Single Master Form (SMF). The format of the SMF is at Annex 2 of said notification.

Monday, June 4, 2018

Important Amendments in Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Amendment) Regulations, 2018


Important Amendments in Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Amendment) Regulations, 2018

The following are some of the important amendments made by RBI recently.

1.Prior Approval is needed for FDIs in investing companies investing in NBFCs not registered with the Reserve Bank and in core investment companies 

 Foreign Investment in investing companies not registered as Non-Banking Financial Companies with the Reserve Bank and in core investment companies (CICs), both engaged in the activity of investing in the capital of other Indian entities, will require prior Government approval.

R V Seckar 09849015177 rvsekar2007@gmail.com,


2.100% Automatic Route for FDIs in NBFCs registered with RBI

Foreign investment in investing companies registered as Non-Banking Financial Companies (NBFCs) with the Reserve Bank, will be under 100% automatic route.

3.Joint Audit in case Foreign Investor Prefers

Wherever the person resident outside India who has made foreign investment specifies a particular auditor/ audit firm having international network for the audit of the Indian investee company, then audit of such investee company shall be carried out as joint audit wherein one of the auditors is not part of the same network.”



OFFERING FOLLOWING SERVICES AS PRACTICING COMPANY SECRETARY


4.FDIs in Airlines is now Restricted to 49% (other than NRIs) under Automatic route


(a) (i) Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline
(ii) Regional Air Transport Service
100%
Automatic up to 49%
Government route beyond 49%
(Automatic up to 100% for NRIs and OCIs)

5.Foreign investment in M/s Air India Limited shall be subject to the following conditions:

    i.        Foreign investment in M/s Air India Ltd., including that of foreign airline(s), shall not exceed 49% either directly or indirectly.

  ii.        Substantial ownership and effective control of M/s Air India Ltd. shall continue to be vested in Indian Nationals.”

R V Seckar 09849015177 rvsekar2007@gmail.com,


6.100% FDIs are Allowed in Real Estate Broking Business

Real estate broking services shall be excluded from the definition of “real estate business” and 100% foreign investment is allowed in real estate broking services under automatic route.”

R V Seckar 09849015177 rvsekar2007@gmail.com,


7.FDI in Single Brand Retailing

“(i) Single brand retail trading entity shall be permitted to set off its incremental sourcing of goods from India for global operations during initial 5 years, beginning 1st April of the year of the opening of first store, against the mandatory sourcing requirement of 30% of purchases from India. For this purpose, incremental sourcing shall mean the increase in terms of value of such global sourcing from India for that single brand (in INR terms) in a particular financial year from India over the preceding financial year, by the non-resident entities undertaking single brand retail trading, either directly or through their group companies. After completion of this 5 years period, the SBRT entity shall be required to meet the 30% sourcing norms directly towards its India’s operation, on an annual basis.”
8.Definition of Sourcing Norms
“Sourcing norms will not be applicable up to three years from commencement of the business i.e. opening of the first store for entities undertaking single brand retail trading of products having 'state-of-art' and 'cutting-edge' technology and where local sourcing is not possible. Thereafter, condition mentioned at 15.3.1(e) above will be applicable. A Committee under the Chairmanship of Secretary, DIPP, with representatives from NITI Aayog, concerned Administrative Ministry and independent technical expert(s) on the subject will examine the claim of applicants on the issue of the products being in the nature of ‘state-of-art’ and ‘cutting-edge’ technology where local sourcing is not possible and give recommendations for such relaxation.”

9.Definition of Medical Devises under Pharmaceuticals

“in-vitro diagnostic device which is a reagent, reagent product, calibrator, control material, kit, instrument, apparatus, equipment or system, whether used alone or in combination thereof intended to be used for examination and providing information for medical or diagnostic purposes by means of examination of specimens derived from the human bodies or animals.”

10.Issue of Shares for the materials imported or pre-operative expenses incurred is under Automatic Route

(4) An Indian company may issue, subject to compliance with the conditions prescribed by the Central Government and/or the Reserve Bank from time to time, capital instruments to a person resident outside India, if the Indian investee company is engaged in an automatic route sector, against:
a.  Swap of capital instruments; or
b.  Import of capital goods/ machinery/ equipment (excluding second-hand machinery); or
c.  Pre-operative/ pre-incorporation expenses (including payments of rent etc.).
Provided Government approval shall be obtained if the Indian investee company is engaged in a sector under Government route. The applications for approval shall be made in the manner prescribed by the Central Government from time to time.



For full details , Please click the following link:

https://rbi.org.in/scripts/BS_FemaNotifications.aspx?Id=11240


Thursday, May 24, 2018

Filing of Annual Return on Foreign Liabilities and Assets (FLA return) under FEMA 1999 Due date for filing of FLA Return with RBI is falling on 15th July 2018.


Filing of Annual Return on Foreign Liabilities and Assets (FLA return) under FEMA 1999

Due date for filing of FLA Return with RBI is falling on 15th July 2018.

R V Seckar Consultant in FEMA , Corporate law , insolvency law and NBFC 09849015177 rvsekar2007@gmail.com,

Who has to File ?

Indian resident companies which have received FDI and/ or made overseas investment (ODI) in any of the previous year(s), including current year by July 15 every year. 

Whether Non Filing of FLA Return is an Offence under FEMA?

Yes. Non-filing of the return before due date will be treated as a violation of FEMA and penalty clause may be invoked for violation of FEMA.

Whether Company has to go for Compounding?

Yes. If FLA Return is not filed within 15th July 2018 , Company has to go for compounding and has to pay penalty.

R V Seckar Consultant in FEMA , Corporate law , insolvency law and NBFC 09849015177 rvsekar2007@gmail.com,


Whether FLA is to be filed even when Audited Accounts are not ready?

Yes. In that case , an Indian Company which has FDI or and ODI has to prepare the FLA on unaudited Financials of the company.

If a company did not receive FDI or made overseas investment in any of the previous year(s) including the current year, do we need to submit the FLA Return?

If the Indian company does not have any outstanding investment in respect of inward and outward FDI as on end-March of reporting year, the company need not submit the FLA Return.

R V Seckar Consultant in FEMA , Corporate law , insolvency law and NBFC 09849015177 rvsekar2007@gmail.com,

If the company has not received any inward FDI / made overseas investment in the latest year, do they need to submit the FLA Return?

 If the company has not ‘received any fresh FDI and/or ODI (overseas direct investment)’ in the latest year but the company has outstanding FDI and/or ODI, then that company is required to submit the FLA Return every year by July 15.

One Full day seminar on FEMA at Mumbai on June 2 ,2018
Please attend one Full day seminar on FEMA at Mumbai on June 2 ,2018 as only limited seats are available. Please rush your request immediately.
For more details , please click the following link:



Saturday, May 19, 2018

FREQUENTLY ASKED QUESTIONS ON EXTERNAL COMMERCIAL BORROWIGNS BY RBI UPDATED AS ON 11th MAY 2018.


RECENT UPDATES BY RBI

FAQ’s ISSUED BY RBI on ECBs

FREQUENTLY ASKED QUESTIONS ON EXTERNAL COMMERCIAL BORROWIGNS BY RBI UPDATED AS ON 11th MAY 2018.

RBI FAQ’s covers the following areas:
1
2
3
4
5
6
7
8

For more details , please click the following link:



One Full day seminar on FEMA at Mumbai on June 2 ,2018
Please attend one Full day seminar on FEMA at Mumbai on June 2 ,2018 as only limited seats are available. Please rush your request immediately.

For more details , please click the following link:



Tuesday, May 15, 2018

ONE FULL DAY SEMINAR ON FEMA AT MUMBAI DATE: June 2, 2018 SATURDAY


ONE FULL DAY SEMINAR ON FEMA AT MUMBAI   

By R V Seckar, F.C.S, ICSA (UK), LLB

DATE: June 2, 2018 SATURDAY

FEE: Rs 2000/= per participant including lavish Lunch ¸two tea-breaks and materials


Venue :
Sunville- Banquet & Conference , 9, Dr. Annie Besent Road, Worli , Mumbai -18  Telephone- 24978082, 24921604


Payment to be sent to:
Axis Bank - Koyambedu branch- Savings Bank Account Number 910010030395067 -IFSC Code : UTIB0001009- Beneficiary Name -
R V Seckar

You can pay through your mobile through

SBI BUDDY – 9848915177

Or
BHIM -9848915177@UP

Morning Session

10 A.M to 11.30 A.M
Various Compliances under FEMA – 
useful to Compliance officers of Listed Companies , Public companies and private limited companies which has FDI , ECB , ODI , etc.
11.45 A.M To 12.15 Noon
How to Make Compounding Application to RBI? What are all to be included in the pleadings?
12.15 Noon to 1 P.M
RECENT AMENDMENTS IN FEMA AND WHAT THE follow-up actions to be taken by the  PROFESSIONALS LIKE COMPANY SECRETARIES , CHARTERED ACCOUNTANTS , CMAS & ADVOCATES in compliance of the same

Afternoon Session

2 P.M to 2.30 PM   
How to Upload FC-GPR, FC-TRS in the ebiz Portal and what are the practical issues faced by the professionals and how to over-come

2.3O-3.30
AVAILING ECB, MAKING ODI – PROCEDURES , COMPLIANCES

3.30 to 4.30 P.M  
Compliance for Investment by NRI & Foreign Entities and Transfers
4.30 P.M to 5.00 P.M
Questions and answers on the topic discussed in the seminar
-
– 
Feedback of my full day seminar on FEMA at Chennai held on 17th September 2016- click here

Feedback on my FEMA seminar at Mysore ICSI chapter on 2nd December 2016, click here


COMMENTS AND PHOTOS TAKEN AT FULL DAY WORKSHOP ON FEMA  HELD AT BENGALURU ON 21ST JANUARY 2017 AT HOTEL CHALUKYA 


Seminar will be handled by
R.V.Seckar, F.C.S, ICSA (UK), LLB, M.com
Consultant in FEMA , Corporate Law , Insolvency law and NBFC 
Interested can contact: 09848915177, rvsekar2007@gmail.com

Please rush your registration as limited seats only available

http://rvseckarfema.blogspot.in/2018/05/one-full-day-seminar-on-fema-at-mumbai.html