Foreign Investment in India - Rationalisation of reporting in Single Master Form (SMF)

 

Foreign Investment in India - Rationalisation of reporting in

Single Master Form (SMF) on

Foreign Investment and Reporting and Management System (FIRMS) Portal

The amendment vide Notification no. RBI/2022-23/160 A.P. (DIR Series) Circular No. 22. Reserve Bank of India on 04^th January, 2023 brought in revamped regulations for Rationalization of reporting in the Single Master Form (SMF) on the FIRMS Portal for Foreign Investment in India.

Foreign Investment in India is governed by the FDI policy announced by the Government of India and the provisions of the Foreign Exchange Management Act (FEMA) 1999.

The new approach streamlines the previous framework for reporting foreign investment in SMF on the FIRMS portal. Highlights of the enhancements are listed below:

·    RBI has brought auto-acknowledgement of SMF in FIRMS, where an auto-generated e-mail will be sent to the applicant with time stamp.

·    Auto-scrutiny of delayed filing is enabled at the Portal itself and in cases of delayed reporting of less than or equal to three years, the LSF will be computed by the system and an e-mail will be sent to the applicant and the concerned Regional Office (RO) of RBI specifying the amount and the timeline within which it is to be paid to the concerned RO of RBI.

·     Auto-scrutiny of delayed filing is also enabled for cases involving reporting delay of more than three years, and AD Bank will approve such form subject to compounding.

Applicability:

The Framework is applicable with immediate effect.

To read in detail, refer to the annex in given source:

Source: https://lnkd.in/gWPgTnS6

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