By Bomi Daruwala (Email: bomi@vaishlaw.com) and Arti Narsana (Email: arti@vaishlaw.com)

The RBI has issued A.P (DIR Series) Circular No.30 June 07, 2018 ("New Reporting Circular"). The objective of the New Reporting Circular is to integrate the extant reporting structures of various types of foreign investment in India in a Single Master Form (SMF). The SMF would be filed online.

Prior to the implementation of the SMF, Reserve Bank would provide an interface to the Indian entities, to input the data on total foreign investment in a specified format. The interface will be available on RBI website www.rbi.org.in from June 28, 2018 to July 12, 2018.

Reporting Requirements

Companies/LLPs/start-ups with already existing Foreign Investment shall report their existing total foreign investment in form Entity Master on the RBI website between 28th June, 2018 to 12th July, 2018.

Consequences of Non-reporting

Indian entities not complying with the above 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.

Considering the serious consequence that non-reporting of existing investment (which has been already duly reported earlier) may also result in being regarded in violation of FEMA, it is advisable that the entities with foreign investment file the Entity Master form on RBI website as soon as possible after the interface opens.

Change in Reporting Formats for Foreign Investment

After the new reporting regime commences i.e., expected be post 12th July 2018, the filings in respect of foreign investment will be integrated into one single form known as Single Master Form and all forms for reporting foreign investment like FC-TRS, FC-GPR, forms for reporting ESOPs, downstream investments, Form LLP-I, Form LLP- II, Form DRR (for issue/transfer of depository receipts), Form InVi- Reporting of investment by a person resident outside India in an Investment vehicle. The move is aimed at simplifying and consolidating the reporting.

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