Annual Return on Foreign Liabilities and Assets (FLA) is now additionally required for AIFs, Partnership Firms

Reserve Bank of India (RBI) vide RBI/2018-19/226 A.P. (DIR Series) Circular No. 37 have introduced Reporting in Foreign Liabilities and Assets Information Reporting (FLAIR) system wherein the annual return on Foreign Liabilities and Assets (FLA) is required to be submitted by the entities which have received FDI (Foreign Direct Investment) and/or made FDI abroad (i.e. overseas investment/ODI) in the previous year(s) including the current year i.e. who holds foreign assets or/and liabilities in their balance sheets. With the introduction of this system the existing mechanism of email-based submission of FLA forms is discontinued. These directions are effective from 28^th June, 2019.

Highlights of the revised reporting system are as follows:

1. Additionally following entities are required to file FLA - SEBI registered Alternative Investment Funds (AIFs) , Partnership Firm, Public Private Partnerships (PPP) etc.
2. A Web-portal interface has been introduced for reporting on which all entities need to register
3. RBI shall provide Login Name and Password after successful registration on the web-portal through which FLA submission can be made.
4. Reporting entities will get system-generated acknowledgement receipt upon successful submission of the form.
5. Investor-wise direct investment, information on FATS related variables, other financial details along-with information on first year of receipt of FDI/ODI and disinvestment are required to be provided.
6.  Entities can revise, view, download the data/information submitted.
7.  Entities can submit FLA information for earlier year/s after receiving RBI confirmation on their request email.

Last date of FLA form submission is July 15, 2019. Non submission of FLA within prescribed time will be treated as non-compliance under Foreign Exchange Management Act, 1999.