Reserve Bank of India (RBI) vide its Circular No. 30 dated 7th June 2018 has announced that it will introduce a Single Master Form (SMF) for integrating the existing reporting structures of various types of Foreign Investment in India.
Before such introduction of SMF, an interface has been provided by RBI which needs to be used by Indian Entities to input the total foreign investment received in such entity in a specified format
The interface has been made available on RBI website from 28th June 2018 and would be available till 12th July 2018. All Indian entities which have received the foreign investments are mandatorily required to disclose details of foreign investment and there is no relaxation for this compliance. Non-compliance will bar such Indian entity to receive any further foreign investment and penal consequences will also follows as per Foreign Exchange Management Act, 1999 and its regulations.
Indian entity is required to disclosure receipt of all foreign remittances irrespective of the fact if reporting has been made to RBI for such remittances.
After implementation of SMF, Indian Entities will be required to only file one single form on receipt of foreign investment as against filing of advance reporting form and Form FC-GPR under the current regulations.
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