As a fallout of its First Bi-monthly Monetary Policy Review dated 5th April, 2018, the Reserve Bank of India (“RBI”) is planning to introduce a Single Master Form (SMF). The SMF is being contemplated with the objective of integrating the extant reporting structures of various types of foreign investment in India. The SMF will have to be filed online. The SMF will provide a facility for reporting total foreign investment in an Indian entity {as defined in Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations 2017, dated November 7, 2017}, as also for investments made by persons resident outside India in an Investment Vehicle.
In the present Circular dated June 07,2018, RBI has informed of its plan to implement SMF. The interface for uploading the SMF by the concerned Indian entities will be available on it’s website (www.rbi.org.in) between 28th June, 2018 to 12th July 2018. Indian entities not complying with this pre-requisite will not be able to receive foreign investment (including indirect foreign investment) and will be considered as non-compliant with Foreign Exchange Management Act, 1999 and regulations. The circular also provides for the format of the SMF (draft). The final format of the Form SMF will be hosted in due time by RBI on its website.
Source: Reserve Bank of India
