2 July, 2018
The Reserve Bank of India (RBI) has issued a circular on 07 June 2018 with the aim of simplifying reporting under the Foreign Exchange and Management Act, 1999 (FEMA). The said circular provides for reporting of foreign investment in a Single Master Form (SMF) irrespective of the instrument through which the foreign investment is made.
Prior to the implementation of the SMF, the RBI has provided a web link for an Entity Master Form (EMF), which is a one-time reporting requirement of all the forms of foreign investment in Indian entities. The EMF needs to be filed before 12 July 2018. All Indian entities which do not comply with this pre-requisite will not be permitted to receive any foreign investment (including indirect foreign investment) going forward and will be declared non-compliant under the provisions of FEMA.
For registering the entity (who are having foreign investment, as on date), please click here.
The relevant details required for registering the entities are as follows:
a) Name;
b) User Name;
c) Email;
d) Permanent Account Number;
e) Mobile Number;
f) Name of the Entity;
g) Corporate Identification Number / LLP Identification Number;
h) Regional Office;
i) Registered Address of the Entity; and
j) Authority Letter.
On completion of the registration process, the said entity is required to submit the EMF. The relevant details of the EMF are as per a format prescribed by the RBI. Please click here to access the prescribed format of the EMF.
The RBI released a user manual on 27 June 2018, which contains the step-by-step process that would be required to be followed by the reporting Indian entity. Please click here to access the said user manual.
For further information, please contact:
Souvik Ganguly, Partner, Acuity Law
al@acuitylaw.co.in
