Foreign Investment in India - Reporting in Single Master Form

For reporting total foreign investment in an Indian entity, an Integrated reporting structure has been introduced which will be called as Single Master Form (SMF).

As announced in the First Bi-monthly Monetary Policy Review dated April 5, 2018, Reserve Bank, with the objective of integrating the extant reporting structures of various types of foreign investment in India, will introduce a Single Master Form (SMF).

The Single Master Format would be filed online.

Why did RBI introduce the Single Master Form?

  • To simplify and rationalize reporting for foreign investment in India.

  • To ensure there is consistency and accuracy of data on foreign investments reported.

What facility does the SMF provide?

SMF would provide a facility for

  • Reporting total foreign investment in an Indian entity {as defined in Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations 2017, dated November 7, 2017}, as also

  • Investment by persons resident outside India in an Investment Vehicle.

Interface provided by RBI

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. The window for uploading such data on the RBI interface is open for only 15 days.

Result of Non-compliance

Indian entities not complying with this pre-requisite 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..

Source: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=11297&Mode=0

Disclaimer:"The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation."

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