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.


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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.

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


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