FIRMS Application

Reserve Bank of India (RBI) vide notification dated June 27, 2018 have introduced an online application i.e., FIRMS (Foreign Investment Reporting and Management System), which would provide the data for the Single Master Form (SMF)

Glimpse of the FIRMS application is as under:

·                               1^st Phase

 In the first phase, the Entity Master is required to be created with RBI wherein Entities are required to provide data with respect to all foreign investments received from incorporation onwards (including transfer from resident to nonresident and vice versa), irrespective of the fact that the regulatory reporting to the RBI for the same has been made or not and whether the same has been acknowledged or not. Due date for providing details to RBI for Entity Master is July 12, 2018.

Indian entities not complying with these instructions will not be able to receive foreign investment (including indirect foreign investment) and will be treated as non-compliant with Foreign Exchange Management Act, 1999 (FEMA)

                2^nd Phase-

In the second phase, Form SMF would be introduced which would be available from August 1 2018. Form SMF would consist of 9 reports namely FC-GPR, FC-TRS, LLP-I, LLP-II, ESOP, DRR, CN, Form DI (reporting of indirect foreign investment), Form InVi (inflows in investment vehicles).