One Stop Form for Foreign Investments in Indian Entities
Contributed by Ruchi Biyani of Nishith Desai and Associates
Foreign investments made in Indian companies or limited liability partnerships by way of allotment or transfer of equity shares are required to be reported to the federal bank in India, i.e. the Reserve Bank of India (RBI), through the authorized dealer banks. Recently there has been a paradigm shift in the reporting regime, where the regulator has introduced a single master form for various kinds of reporting as compared to the earlier regime where multiple reporting were required for different legs of the same or multiple transactions.
The above said change is proposed to be implemented in two steps, first being reporting of master entity form by all Indian investee entities on the RBI portal within a window of 15 days. The deadline for the entity master form filing expires on July 12, 2018. The second step of its implementation would completely replace the old model of reporting, where the investee entities or the resident transferors/transferees, as the case may be, were required to do the filing on e-Biz portal (i.e. a Government portal designated for reporting, among others, to the RBI), with a new platform to be created on the RBI’s website.
These changes would further ease doing business in India for foreign investors who already are subject various sectoral restrictions and monitoring by various enforcement agencies in the country. In such circumstances, the proposal to consolidate multiple reporting under FEMA into one single master form is a much needed relief and should attract more investors towards the Indian market. You can read detail information about the new reporting regime and analysis by Nishith Desai Associates by clicking here.
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