Single Master form (SMF) for FDI Reporting introduced by RBI
The Reserve Bank of India (RBI) with the objective of integrating the reporting requirements of various types of foreign investment in India, has introduced a single online reporting form known as Single Master Form (SMF) vide Circular No.30 dated 7th June, 2018. Prior to implementation of SMF, in order to achieve the said objective, entities (including investment Vehicles) having foreign investments in India will have to input the data on total foreign investments in India till date in Entity Master file as mentioned in the said circular in a specified format.
The said details are required to be provided online through an interface which will be provided on the RBI website between 28th June, 2018 and 12th July, 2018. In order to enable entities to be ready with the details to be provided on the interface, RBI has provided the format of Entity Master File forming part of the said circular.
Indian entities not complying with the pre-requisite of preliminary reporting through the interface between 28th June, 2018 and 12th July, 2018, will not be able to receive foreign investment and will be non-compliant with FEMA Regulations.
The RBI through the said SMF intends to create a Master File for each entity and facilitate a monitoring system for subsequent inflow and outflow of foreign exchange.
Pursuant to the said change, various forms previously reported separately (viz. Form FC-GPR, FC-TRS, ESOP, LLP-I/II, CN, DI, DR, InVi) will now be subsumed and reported in SMF.
The requirements of reporting in SMF are also applicable to companies receiving indirect (downstream) foreign investment in India.
The RBI aims to host and make available a final version of the SMF to all users shortly.
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