FEMA / RBI Compliance Checklist

Sl. No.

Compliance(s) Particular

Details of Compliance(s)

Who / Why is required to Comply

Due Date(s)

Key Points

1

Annual Return on Foreign Liabilities and Assets
(FLA Return)

FLA Return is required to be submitted mandatorily by all the India resident companies which have received FDI and/ or made ODI in any of the previous year(s), including current year

Who holds foreign assets or liabilities in their financial statements as on 31 March.

on or before 15 July every year.

If the Indian company does not have any outstanding investment in respect of FDI and/or ODI as on end of the reporting year, the Company need not submit the FLA Return.
Similarly, if the Indian company has not ‘received any fresh FDI and/or ODI in the latest year but the company has outstanding FDI and/or ODI, then that company is still required to submit the FLA Return every year by 15 July.

2

Annual Performance Report (APR)

An Indian Party (IP) / Resident Individual (RI) which has made an Overseas Direct Investment (ODI) has to submit an Annual Performance Report (APR) in Form ODI Part II to the AD bank  in respect of each Joint Venture (JV) / Wholly Owned Subsidiary (WOS) outside India.

An Indian Party (IP) / Resident Individual (RI) which has made an Overseas Direct Investment (ODI)

on or before 31st December, every year.

APR is required to be certified by the statutory auditor of the Indian party. Certification of APRs by the Statutory Auditor or Chartered Accountant shall not be insisted upon in the case of Resident Individuals and self-certification can be accepted in such case.

3

External Commercial Borrowings

Borrowers are required to report all ECB transactions to the RBI on a monthly basis through an AD Category – I Bank in the form of ‘ECB 2 Return’.

borrowers are required to report all ECB transaction

 monthly basis

The revised ECB 2 Return simplifies disclosure of hedging details into two baskets – financial and natural and requires disclosure of only the following:
1. Outstanding principal ECB amount and the currency thereof;
2. Notional value and percentage of outstanding ECB amount of financial hedge(s) as well as natural hedge; and
3. Annualised percentage cost of financial hedge(s) for ECB.

4

Single Master Form {w.e.f. 30.06.2018}

Integrates the reporting requirements for FDI in india, irrespective of the instrument through which foreign investment is made.

Subsumes of FC-GRP, FC-TRS, LLP-I, LLP-II, CN, ESOP, DI, DRR  forms into one single master form

1. FDI reporting in Form FC-GPR under SMF has to be done within 30 days after the allotment.

2. Reporting under FC-TRS under SMF has to be done within 60 days of transfer of capital instruments or receipt / remittance of funds whichever is earlier.

3. Form LLP-I & LLP-II is filed for reporting FDI & transfer of capital contribution or profit share in LLPs, respectively.

4. Reporting in respect of issue or transfer of Convertible Notes (CN) is done in Form CN within 60 days of such transfer.

FC-TRS: Filing by Individual:

Reporting in FC-TRS can be done by the transferor / transferee company resident in India. In case of transfer between individuals, reporting can be done by resident individual after registering as business user and in this case the authority letter must be in the name of the person who is reporting.

5

Advance Reporting Form (ARF)

report the details of the amount of consideration to the Regional Office concerned of the Reserve Bank through its AD Category I bank,

An Indian company receiving investment from outside India for issue of shares or other eligible securities under the FDI Scheme.

Not later than 30 days from the date of receipt in the Advance Reporting Form (ARF)

6

Form FC-GPR

Issue of bonus or rights shares to persons resident outside India directly or on amalgamation/ merger with an existing Indian company, as well as issue of shares on conversion of ECB/ royalty/ lumpsum technical know-how fee/ import of capital goods by units in SEZs has to be reported in Form FC-GPR.

 After issue of shares or other eligible securities, the Indian company has to file

not later than 30 days from the date of issue of shares

7

Form FC-TRS

Reporting of transfer of shares and other eligible securities between residents and non-residents and vice- versa is to be made in Form FC-TRS.

The Form FC-TRS should be submitted to the AD Category – I bank

With in 60 days from the date of receipt of the amount of consideration.

The onus of submission of the Form FC-TRS within the given timeframe would be on the transferor/ transferee, resident in India.

8

Form ODI

Overseas investments (or financial commitment) in Joint Ventures (JV) and Wholly Owned Subsidiaries (WOS)

An Indian Party and a Resident Individual making an overseas investment is required to submit form ODI

receive share certificates or any other documentary evidence of investment in the foreign JV / WOS as an evidence of investment and submit the same to the designated AD within 6 months;

In case of disinvestment, sale proceeds of shares/securities shall be repatriated to India immediately on receipt thereof and in any case not later than 90 days from the date of sale of the shares /securities and documentary evidence to this effect shall be submitted to the Reserve Bank through the designated Authorised Dealer.