{"id":4332,"date":"2018-06-23T00:35:49","date_gmt":"2018-06-22T19:05:49","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=4332"},"modified":"2021-12-03T17:15:18","modified_gmt":"2021-12-03T11:45:18","slug":"rbi-introduced-mandatory-fdi-reporting-through-single-master-form-smf","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/rbi-introduced-mandatory-fdi-reporting-through-single-master-form-smf\/","title":{"rendered":"rbi introduced mandatory fdi reporting through smf"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e5c4bf7c1e9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e5c4bf7c1e9\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/rbi-introduced-mandatory-fdi-reporting-through-single-master-form-smf\/#RBI_INTRODUCED_MANDATORY_FDI_REPORTING_THROUGH_SMF\" title=\"RBI INTRODUCED MANDATORY FDI REPORTING THROUGH SMF\">RBI INTRODUCED MANDATORY FDI REPORTING THROUGH SMF<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/rbi-introduced-mandatory-fdi-reporting-through-single-master-form-smf\/#WHAT_IS_SMF\" title=\"WHAT IS SMF:-\">WHAT IS SMF:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/rbi-introduced-mandatory-fdi-reporting-through-single-master-form-smf\/#SUBSEQUENT_INVESTMENTS_IN_ANNEX-2\" title=\"SUBSEQUENT INVESTMENTS IN ANNEX-2:-\">SUBSEQUENT INVESTMENTS IN ANNEX-2:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/rbi-introduced-mandatory-fdi-reporting-through-single-master-form-smf\/#CONSEQUENCES_OF_NON-COMPLIANT_BY_INDIAN_COMPANIES_CANNOT_RECEIVE_FDIS\" title=\"CONSEQUENCES OF NON-COMPLIANT BY INDIAN COMPANIES CANNOT RECEIVE FDIS\">CONSEQUENCES OF NON-COMPLIANT BY INDIAN COMPANIES CANNOT RECEIVE FDIS<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/rbi-introduced-mandatory-fdi-reporting-through-single-master-form-smf\/#RJA_comments\" title=\"RJA comments\">RJA comments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/rbi-introduced-mandatory-fdi-reporting-through-single-master-form-smf\/#Payment_of_Security_to_MSME_according_to_LAW\" title=\"Payment of Security to MSME according to LAW\">Payment of Security to MSME according to LAW<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/rbi-introduced-mandatory-fdi-reporting-through-single-master-form-smf\/#Micro_Small_and_Medium_Enterprises\" title=\"Micro Small and Medium Enterprises\">Micro Small and Medium Enterprises<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<figure id=\"attachment_8702\" aria-describedby=\"caption-attachment-8702\" style=\"width: 808px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/06\/fdi.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8702\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/06\/fdi.jpg\" alt=\"www.carajput.com; FDI\" width=\"808\" height=\"545\" \/><\/a><figcaption id=\"caption-attachment-8702\" class=\"wp-caption-text\">www.carajput.com; FDI<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"RBI_INTRODUCED_MANDATORY_FDI_REPORTING_THROUGH_SMF\"><\/span>RBI INTRODUCED MANDATORY FDI REPORTING THROUGH SMF<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">In a partial manner, notification is applicable to the existing FDI. It is expected from the company that the company provides all the details of existing FDI in the prescribed format and prescribed manner as available in this respective notification.<\/p>\n<p style=\"text-align: justify;\">SMF gives the facility related to reporting of total foreign investment in an Indian entity and also provides facility related to investment in investment vehicle to the person outside India.<\/p>\n<p style=\"text-align: justify;\">Before any implementation of this process, the <a href=\"https:\/\/www.caindelhiindia.com\/blog\/banking-complaints-with-rbis-ombudsman\/\">Reserve Bank of India<\/a> will provide a specific format from 28.06.2018 to 12.07.2018 to Indian entities for input the data of foreign investment.<\/p>\n<p style=\"text-align: justify;\">Before the implementation of Single Master Form (SMF), RBI would provide an interface of specified format called Entity Master File (EMF) to Indian entities for input the data of total foreign investment. From 28.06.2018 to 12.07.2018 RBI will make available the interface on their website.<\/p>\n<p style=\"text-align: justify;\">The Indian entities who will not qualify the pre-requisite requirement will not able to receive any foreign investment in India and those Indian entities will be considered as non-compliant in <a href=\"https:\/\/carajput.com\/fema.php\">Foreign Exchange Management Act (FEMA), 1999<\/a>, and regulations.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"WHAT_IS_SMF\"><\/span><strong>WHAT IS SMF:-<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li>RBI will introduce a SMF to fulfill the objective of integration of various reporting structure of foreign investment in India. The SMF is required to be filed online and also provide a facility to an Indian entities for reporting total foreign investment. Single Master File is a substitute of individual reporting currently done through \u201cForm FC-GPR, FC-TRS, LLP-I, LLP-II, ESOP, CN&amp;DRR\u201d. However the requirement of submitting the annual statement of \u201cforeign liabilities and assets\u201d to RBI is to continue 15 July every year.<\/li>\n<li>The Single Master Form will be integrated reporting forms which will be event-based form helping the person residing outside India in reporting the total foreign investment.<\/li>\n<li>Entity Master Data (EMD) Annex-I : It is required to all Indian entities to provide all the details of foreign investment received by them till date called as Entity Master Data and the format of is given in Annex-I of said notification.<\/li>\n<li>SMF will also provide the facility of reporting total foreign investment in an Indian entity via company, LLP &amp; other investment vehicles(REITs)\/Infrastructure Investment Trusts(Invlts)\/Alternative Investment Funds(AIFs).<\/li>\n<li>A SMF is the substitute of existing forms such as:\n<ul>\n<li>For issue &amp; transfer of shares \u2013 FC-GPR &amp; FC-TRS.<\/li>\n<li>For foreign direct investment &amp; foreign disinvestment\/transfer of capital contribution in <a href=\"https:\/\/carajput.com\/services\/limited-liability-partnership.php\">LLP<\/a> \u2013 FORM LLP-I &amp; II.<\/li>\n<li>For issue of employee stock option plan \u2013 FORM ESOP<\/li>\n<li>For issue or transfer of convertible notes \u2013 FORM CN<\/li>\n<li>For issue or transfer of depository receipts \u2013 FORM DR<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li>Single Master Form will also compulsory in following:-\n<ul>\n<li>Reporting the Downstream Investment (Indirect Foreign Investment) in a company or LLP via FORM DI.<\/li>\n<li>Reporting of investment by person residing outside India in an investment vehicle (including REITs, Invlts &amp;AIFs) via FORM InVi<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"SUBSEQUENT_INVESTMENTS_IN_ANNEX-2\"><\/span>SUBSEQUENT INVESTMENTS IN ANNEX-2:-<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">For any subsequent foreign investments, an integrated reporting structure of various types of foreign investment introduced which will be called SMF.<\/p>\n<p style=\"text-align: justify;\">The format of SMF is given in Annex 2 of said notification. While the format of the form has been provided as Annex 2 to the circular, RBI is yet to notify the form. Once notified, the form will be available in the master direction on reporting as well as on the website for the entities to file it as and when required.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CONSEQUENCES_OF_NON-COMPLIANT_BY_INDIAN_COMPANIES_CANNOT_RECEIVE_FDIS\"><\/span><strong>CONSEQUENCES OF NON-COMPLIANT BY INDIAN COMPANIES CANNOT RECEIVE FDIS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">The Indian entities who will not qualify the pre-requisite requirement will not able to receive any foreign investment in India and those Indian entities will be considered as non-compliant in Foreign Exchange Management Act (FEMA), 1999 and regulations.<\/p>\n<p style=\"text-align: justify;\">FEMA requires observation of its provisions in letter and spirit and if any contravention may land in penalties on the erring company and individuals. There are some conditions and stipulations in case of FDI, ODI, investment by individuals in foreign shares, purchase of assets in foreign countries, extending guarantees, availing ECBs, supplier&#8217;s credit.<\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"RJA_comments\"><\/span>RJA comments<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">The integration of the extant reporting structures is a positive move made by RBI to simplify and rationalize reporting for foreign investment in India. This crucial amendment is in line with the SEBI circular which was issued for the listed companies for monitoring FDI limits.<\/p>\n<p style=\"text-align: justify;\">There may be certain practical difficulties before implementation of the new form for the Indian entities to collate details on foreign investment, especially as the window for uploading such data on the RBI interface is open for only 15 days. Now severe consequences attached to non-filing, Indian entities having foreign investment must prepare to submit the information timely.<em>\u00a0<\/em><\/p>\n<p style=\"text-align: justify;\"><em>The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. The information in this blogs is solely for the addressee and should be treated as confidential &amp; non-binding<\/em><\/p>\n<p style=\"text-align: justify;\">For any query you can write to\u00a0<a href=\"https:\/\/mailto:singh@carajput.com\/\">singh@carajput.com<\/a>. Hope the information will assist you in your Professional\u00a0endeavors. For query or help, contact:\u00a0\u00a0\u00a0<a href=\"https:\/\/mailto:singh@carajput.com\/\">singh@carajput.com<\/a>\u00a0or call at\u00a009811322785\/4 9555 5555 480)<\/p>\n<p>More read:<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Payment_of_Security_to_MSME_according_to_LAW\"><\/span><a href=\"https:\/\/carajput.com\/blog\/payment-security-to-msme-according-to-law\/\">Payment of Security to MSME according to LAW<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"Micro_Small_and_Medium_Enterprises\"><\/span><a href=\"https:\/\/carajput.com\/blog\/micro-small-and-medium-enterprises\/\">Micro Small and Medium Enterprises<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>RBI INTRODUCED MANDATORY FDI REPORTING THROUGH SMF In a partial manner, notification is applicable to the existing FDI. It is expected from the company that the company provides all the details of existing FDI in the prescribed format and prescribed manner as available in this respective notification. SMF gives the facility related to reporting of &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[2208,2050,2207,2053,833,2206,2205],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/4332"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=4332"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/4332\/revisions"}],"predecessor-version":[{"id":19413,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/4332\/revisions\/19413"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=4332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=4332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=4332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}