Know all about FIRMS RBI Reporting, Form Filling and Submission By Divyansh Sachdeva


[Foreign Investment Reporting and Management System]
 
With the increasing pace of India, there is always a need to take such initiative to ease down the business scenario for maintaining the healthy relationship between the Business or corporate user and the government of India through which the several investors cope up to be aware of the efficient working of the entity where their currency being invested.
 
One such initiative is FIRMS-APPLICATION, where THE RESERVE BANK in First Bi-monthly monetary policy review dated April 5th, 2018 announced with the objective of integrating the extant reporting structures of various types of foreign investment in India, it will introduce a Single Master Form (SMF) subsuming all the existing reports.

For the effective execution of the announcement Firms has been made online in two phase: the first phase viz, The Entity Master made available online to the public from June 28th, till July 12th, 2018, further extended to July 20th, 2018 the other phase viz, The Single Master Form is available online from September 1st, 2018 At present five forms viz., FC-GPR, FC-TRS, LLP-I, LLP-II and CN(Convertible Notes) are being made available for filing in SMF. The other four forms viz., ESOP, DI, InVi and DRR would be made available subsequently. With effect from September 01, 2018, all new filings for the above 5 forms have to be done in SMF only.

Conclusively, the above mentioned Five(5) Forms has been subsumed in one stop shop i.e SMF. and No extra Filing of other form is required on eBiz Portal. While notification FE.CO.FID//282/10.02.035/2018-19 dated August 31st, 2018 stated that all the pending FCGPR/FCTRS on the e-biz portal with resubmission/ clarification is to be disposed off within a week failing which it would not be treated the FC-GPR as filed
 
Note: Those Business users or Corporate user who has not entered in the First Phase(Entity Master) is further not to afraid of and can still Register through Firm.rbi.org.in portal attaching the reason for the delay along with the letter of Authority(authorizing the person to proceed for reporting).
 
For the completion of Single Master Form, one has to use the below mentioned follow up:
 
Registration as a Business User (BU)
 
Step 1:   Go to the FIRMS website at https://firms.rbi.org.in
Step 2: At the Login box, click on the Registration form for New Business User.
Step 3: Fill up the details in the popped up registration form for BU(Business User) as below
Step-4: Click Submit button when complete details had been entered. In case any error is displayed, rectify the same and click the Submit button.
Step 5: A Message “Record Saved Successfully” is displayed at the top of the Login box.
 
Now, the registration procedure has been successfully completed on your hand. After Submission, the registration form will have to be verified by the AD Bank Branch concerned. The approval/ rejection of the same would be communicated through email notification to the BU(Business User).
 
Logging into Firms:
 
Step 1: Go to the FIRMS website at https://firms.rbi.org.in

Step 2: Enter User Name and default password as provided via email notification. Enter captcha and click submit.

Step 3: Upon first Login, BU would be prompted to change the password through a pop-up window. Enter the details and submit. Upon success, Message “Password changed successfully” would appear on the Login Box.

Step 4: Enter username, new password and captcha in the Login Box and click submit. The user would be taken to his/ her workspace.

Upon subsequent logins, the BU may enter the username, set password and captcha in the Login box and click submit. The user would be taken to his/ her workspace.

Using forgot password:

In case the user forgets his /her password, the following steps shall be followed.

Step 1: Click on forgot password in the Login Box.

Step 2: Enter the username and registered email id in the pop-up window and click submit.
 
Note: An email would be sent to the email id with the default password. The user shall check its registered email id for the new default password and follow the steps under the head “Logging into SMF” for logging into SMF
 
Form Filling and Submission
 
Follow up the step for FC-GPR (Indian Co. has to file at the time of receipt of Foreign Investment).
 
Step 1: Login into SMF and reach your workspace.

Click on the left navigation button and select Single Master Form.

Step 2: Click on the drop-down menu “Return Type”.

Select “Form FC-GPR” and click on Add new return. The user will be taken to form FC-GPR.
 
The form will be divided in two parts:
 
  1. Common Investment Details (These Details are Common for all reports in SMF)
  2. Form FC-GPR, which is further arranged in Five(5) tabs
Tab 1: Issue details
Tab 2: Foreign Investors details
Tab 3: Amount of Issue
Tab 4: Particulars of Issue
Tab 5: Shareholding Pattern
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Step 5.6: After filling up details, click on Save and Submit for submitting the form.
 
Note: The Business User can also save the draft and submit later, by filling in all mandatory details in the “Common details” page.
 
Follow up the step for FC-TRS (Indian Transferor/ee has to file at the time of Transfer of Share between Resident and Non-Resident).
 
Step 1: Login into SMF and reach your workspace.
Click on the left navigation button and select Single Master Form.
Step 2: Click on the drop-down menu “Return Type”.
Select “Form FC-TRS” and click on Add new return. The user will be taken to form FC-TRS.
 
The form will be divided in two parts:

  1. Common Investment Details (These Details are Common for all reports in SMF)
  2. Form FC-GPR, which is further arranged in three/four(3/4) tabs
Tab 1: Common details
Tab 2: Particulars of Transfer
Tab 3: Remittance Details (field shall remain blank in the case of “Transfer by Gift”)
Tab 4: Shareholding Pattern
 
Step 3: After filling in all details, click on Save and Submit for submitting the form.
 
Note: The Business User can also save the draft and submit later, by filling in all mandatory details in the “Common details” page.
 
Now Certain below mentioned points to be explained while filing up the forms.
 

Form/ Tab

Field Name

Description

(a)

Common Investmnent Details

 

 

 

 

Entry Route

Select Automatic or Government as applicable for the investment being reported. In case the Government route is selected attach the requisite Government approvals.

Explanation: where the company belongs to a sector with mixed entry routes, Instance: brownfield pharmaceuticals where up to 74% is under Automatic Route and beyond up to 100% under Government Route. If the investment being reported is under 74%. The entry route selected shall be automatic and in case the investment being reported would result into foreign investment beyond 74%, the entry route selected shall be the government with relevant government approvals attached.

Applicable Sectoral cap/ Statutory ceiling*

 

Applicable sectoral cap as per FEMA 20(R).

Explanation: where the company belongs to a sector with mixed entry routes, for example, brownfield pharmaceuticals where up to 74% is under automatic route and beyond up to 100% under Government route, the applicable sectoral cap would be 100%.

 

Tab-4

Fair value of the Shares

(in Rs)

 

The fair value of the shares as per the valuation certificate issued by the person authorized as per FEMA 20 (R) along with the attachment at “Valuation Certificate”.

Mandatory where nature of issues is “Preferential Allotment/Private Placement/Private arrangement” and “Conversion of Convertible Notes”.

Tab-1

Common details

 

 

 

 

 

Transfer from

 

Select from the following options as applicable:

#  Resident to Non-resident (including NRI/OCI on repatriable basis)

#  Non-resident (including NRI/OCI on repatriable basis) to Resident

#  NRI /OCI/eligible investor on the non-repatriable basis to Non-resident(including NRI/OCI on repatriable basis)

#  Non-resident (including NRI/OCI on repatriable basis) to NRI/OCI/eligible investor on the non-repatriable basis.

 

Tab -1

 

Transfer Type

 

 

Select from the following options as applicable:

#  Transfer as per Regulation 10(3) of FEMA 20(R)-Sale of capital instruments from a person resident outside India to a person resident in India

# Transfer as per Regulation 10(4) of FEMA 20(R)-Sale of capital instruments from a person resident in India, including NRI/OCI or eligible investor under Schedule 4 to FEMA 20(R) to a person resident outside India

# Transfer as per Regulation 10(5) of FEMA 20(R)-Gift of capital instruments from a person resident in India, including NRI/OCI or eligible investor under Schedule 4 to FEMA 20(R) to a person resident outside India

# Transfer as per Regulation 10(12) of FEMA 20(R)-Invocation of the pledge.

# Transfer of capital instruments as per Regulation 3 to FEMA 20(R)

# Others (please specify)

Tab-1

Nature of Transfer

 

Select from the following options as applicable:

#  Offer for sale in an IPO/ FPO

#  Private arrangement

#  Swap of capital instruments

#  Sale on a stock exchange other than those under Schedule 2 and Schedule 3 of FEMA 20(R)

#  Purchase on a stock exchange other than those under schedule 2 and Schedule 3 of FEMA20(R)

#  Participating interests/rights in oil fields

#  Merger / Demerger / Amalgamation

#  Buyback

#  Invocation of the pledge

#  Others (please specify)

 

Not applicable for Transfer by Gift

Tab-4

Declaration

 

“I hereby declare that I have verified the information provided in this form and certify that the information provided is true, complete and correct. In case of any discrepancy in the above information, I may be held liable for the same. These declarations and submissions are made in compliance with the Foreign Exchange Management Act, 1999. I hereby attach requisite Declaration, CS certificate and other relevant attachment(s) for this reporting.” *

Please select “Yes” upon completing all details in the form. Attach the Declaration and CS certificate as well as other relevant documents in the attachment “CS certificate/other attachments”.

Tab-5

 

Shareholding pattern

Particulars

Pre-Transaction

Post-Transaction

 

Value of equity shares (on a fully diluted basis) other than Foreign Portfolio Investment and indirect foreign investment or Value of Capital contribution/profit shares

 

 

Foreign Portfolio Investment

 

 

Indirect foreign investment- Value of equity shares (on a fully diluted basis)

 

 

Total

 

 

Percentage

 

 

 

Pre-transaction values are auto-populated from the Entity Master (tab 3)

Post-transaction values are auto-calculated based upon the details provided in the form. Post transaction=Pre transaction value of shares + Value of shares reported in the form.

 

The Business user shall ensure that the details are correctly filled in the form so that the shareholding pattern which is auto- calculated is correct.

   

Verification:
 
Step 1: Using the left Navigation button go to File return and then to Approve form
Step 2: Select the return type,
Enter the from and to date and select the status as pending approval and click on search return.
 
All form of the return type would be displayed. Select the form as desired. The form will open up with all details as filed by the Business user along with the Entity details and checklist
 
Step 3: Go through the details as filed by the Business User and verify the same with the attached documents.
 
Procedure of Scrutiny
 
The checklist provides the details that need to be verified for acknowledging the filed return. A set of the checklist as applicable to that particular return is being provided to the AD bank along with the filed form.
AD bank is required to check only those details and if found to be in order, approve the return. In case the Business user has not provided the details, AD Bank shall reject the form. It may be noted that there is no provision for resending or attaching any clarification once the form is submitted. Therefore, the AD may take due caution while approving or rejecting the same.

In exceptional cases where for the specific reasons the AD needs to refer the form to RBI, the AD may select the Regional Office from the drop-down menu, enter the reasons for referring it to RBI under “remarks” field and click on Send to RBI.

RBI would provide the advice on whether the form be approved or rejected to the AD bank. The final acknowledgement and rejection would be then made, accordingly, by AD bank.

AD bank will have only 5 working days for approving or rejecting the form or sending it to RBI.
 
Source: https//www.rbi.orgE-mail: helpfirms@rbi.org.in

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