On January 4, 2023, the Reserve Bank of India (“RBI”) issued a circular for rationalization of reporting of foreign investment in Single Master Form (“SMF”) on FIRMS Portal (“Circular”). The Circular states that the following changes are being implemented with respect to the reporting of foreign investment in SMF on FIRMS portal:
The Annex to the Circular lays down the salient features of the changes made in the system. For detailed guidelines, the FIRMS manual available at https://firms.rbi.org.in may be referred to, and the version of the manual available at the portal will have the finality in case of any mismatch.
The salient features of the changes made in the system are as follows:
Auto-acknowledgement of SMF in FIRMS and online calculation of LSF - The forms submitted in FIRMS will now be processed as detailed below:
The SMF was introduced by RBI, vide its circular dated June 7, 2018, with the objective of integrating the extant reporting structures of various types of foreign investment in India. The changes being implemented through this Circular will further simplify and streamline the process of reporting foreign investment, as the acknowledgement will be generated automatically and LSF, if any, shall be calculated online and intimated to the reporting entity via system generated email.
Please find a copy of the Circular, here.
This update has been contributed by Prashanth Sabeshan (Partner) and Smriti Tripathi (Senior Associate).
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