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The present system of reporting foreign investments involves filing of various forms at ebiz (eBiz Portal ) and other platforms. New directions have been issued by RBI vide Circular dated 7th June 2018 (New RBI Circular) which lays down the agenda for implementing the reporting of foreign investments through single form called SMF. This Single Master Form shall integrate the foreign indirect investment (downstream investment) as well. Details of the Circular can be read at Integrated Reporting Of Foreign Investment In India.

 

7 Point Summary on SMF:

 

  1. RBI circular has integrated the reporting of various types of foreign investment including foreign indirect (downstream) investment as well in one single form. (Format of SMF can be viewed at  Format of SMF)

 

  1. Both Corporates, as well as LLPs are required to comply.

 

  1. What is included: It is an online reporting facility covering reporting requirements like FC-GPR (allotment of shares), FC-TRS (transfer of shares), LLP-I (receipt of funds by LLP) and LLP-II (disinvestment / transfer).

 

  1. Exclusion: ARF (Advance remittance) and FLA (annual returns) are outside the purview of SMF.

 

  1. Entity Master Form (EMF): Prior to commencement of SMF reporting, all the entities are required to provide data on total outstanding foreign investment received by them as on date. It is a one-time filing requirement. (Format of EMF can be viewed at  Format of EMF)

 

  1. A limited period 15 day window would be available on RBI website to file EMF. It is from June 28, 2018 to July 12, 2018.

 

  1. Consequences: Non filing of EMF will disable them from receiving any type of foreign investment and will also be considered as non-compliance under FEMA.

 

 

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