With the objective of integrating the extant reporting structures of various types of foreign investment in India, RBI introduced Single Master Form (SMF) through its Notification RBI/2017-18/194 A.P (DIR Series) Circular No.30. Dated June 07, 2018 w.e.f. September 1, 2018.
SMF Form provides reporting of various forms for foreign investment which includes:
Issue of capital instruments by an Indian company to a person resident outside India.
Transfer of capital instruments between a person resident outside India and a person resident in India.
FDI in LLP through capital contribution and profit shares
Disinvestment/ transfer of capital contribution and profit shares in LLP.
Issue or transfer of convertible notes
Issue/transfer of Depository Receipts
Issue of ESOPs / sweat equity shares/ shares against exercise of ESOP by an Indian company to an employee resident outside India.
Reporting of downstream investment (indirect foreign investment) in a company or LLP.
Reporting of investment by a person resident outside India in an Investment vehicle.
FORM FCGPR - THEORETICAL ASPECT
Form Foreign Currency-Gross Provisional Return (FC-GPR):
An Indian company issuing capital instruments to a person resident outside India and where such issue is reckoned as Foreign Direct Investment, for the purpose of these regulations, shall report such issue in Form FC-GPR to the Regional Office concerned of the Reserve Bank under whose jurisdiction the Registered office of the company operates, not later than thirty days from the date of issue of capital instruments. Issue of ‘participating interest/ rights’ in oil fields shall be reported Form FC-GPR.
Foreign Direct Investment (FDI) means investment through capital instruments by a person resident outside India in an unlisted Indian company, or in 10 percent or more of the post issue of paid-up equity capital on a fully diluted basis of a listed Indian company;
Delays in reporting
The person/ entity responsible for filing the Form FC-GPR shall be liable for payment of late submission fee, as may be decided by the Reserve Bank, in consultation with the Central Government, for any delays in reporting.
Penalty in case of Non compliance
For 1st six months
1% of the total amount of investment subject minimum of Rs. 5,000 and Maximum of Rs/. 5,00,000 per month.
After Six Months
Twice of 1% of the total amount of investment subject minimum of Rs. 5,000 and Maximum of Rs/. 5,00,000 per month.
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