The Reserve Bank of India (“RBI”) has recently issued a A.P. DIR Series Circular No. 30, dated 7 June 2018 in relation to Foreign Investments in India (copy of circular attached).
Vide the said circular, RBI has proposed to introduce a Single Master Form (“SMF”), with the objective of integrating the reporting structures for various types of foreign investments in India by different kinds of entities. Accordingly, going forward, Indian entities would be required to file Form SMF online, at the time of receipt of foreign investments.
However, prior to implementation of Form SMF, RBI will provide the Indian entities with an interface to input the details pertaining to foreign investments already received, in a specified format. For the said purpose, RBI has requested the Indian entities to be ready with the details to be provided in the Entity Master, as per the “RBI Compliance – Annexure 1” (attached for your ready reference). Further, it has been mentioned that the said interface would be available on RBI website (www.rbi.org.in) from 28 June 2018 to 12 July 2018.
Accordingly, considering that the Company has received foreign investments in earlier years, it shall be required to provide the requisite data to RBI through the said interface. We accordingly recommend to keep the data ready as per the details prescribed in the Annexure 1, for ease in uploading the same on RBI interface.
Lastly, we would like to also highlight that the circular categorically states that any Indian entity not complying with this pre-requisite will not be able to receive any foreign investments going forward (including indirect foreign investment), and will be considered to be non-compliant with the provisions of Foreign Exchange Management Act, 1999 and regulations made thereunder. Hence, it must be ensured that there is no default in compliance with the same.