News From the Desk of RBI: Discontinuation of Certain Returns/Reports Under FEMA
News From the Desk of RBI: Discontinuation of Certain Returns/Reports Under FEMA
Discontinuation of certain Returns/Reports under the Foreign Exchange Management Act, 1999
The Reserve Bank of India had, with a view to improving the ease of doing business and reducing the cost of compliance, reviewed the existing forms and reports prescribed under the Foreign Exchange Management Act, 1999 and had decided to discontinue the 17 returns/reports referred to under Master Direction Reporting under Foreign Exchange Management Act, 1999 dated January 01, 2016 with immediate effect.
The details of the aforesaid discontinued returns/reports are provided below:
| Sl No. | Name of Report | Reporting Entity | Frequency
|
| 1 | Category-wise transaction where the amount exceeds USD 5000 per transaction | AD Category-II | Monthly |
| 2 | Category-wise, transaction-wise statement where the amount exceeds USD 25,000 per transaction | AD Category- II | Monthly |
| 3 | Statement of Purchase transactions of USD 10,000 and above (including transactions of their franchisees) | FFMCs and AD Category- II | Monthly |
| 4 | Extension of Liaison Offices (LOs) | AD Category-I banks | As and when extension is granted |
| 5 | Extension of Project Offices (POs) | AD Category-I banks | As and when extension is granted |
| 6 | FII/FPI daily: Daily inflow/outflow of foreign fund on account of investment by FPIs | AD banks | Daily |
| 7 | FII/FPI Return (Monthly): Data relating to actual inflow /outflow of remittances on account of investments by Foreign Institutional Investors (FIIs) in the Indian Capital market | AD Category-I banks | Monthly |
| 8 | FVCI reporting: Inflows/outflows of remittances on account of investments by Foreign Venture Capital Investor (FVCIs) and Market value of Investments made by FVCIs | AD Category-I banks/Custodian banks | Monthly |
| 9 | Reporting of Inflow/Outflow details in respect of Mutual Fund by Asset Management Companies | Asset Management Companies | Quarterly |
| 10 | Market value of FII Investment in India on fortnightly basis | AD Category-I banks | Fortnightly |
| 11 | Market value of FII Investment in India on Monthly basis | AD Category-I banks | Monthly |
| 12 | FII holdings as percentage of floating stock | AD Category-I banks | Monthly |
| 13 | Form DRR for Issue/transfer of sponsored/unsponsored Depository Receipts (DRs)-Hardcopy@ | Custodian | At the time of issue/transfer of depository receipts |
| 14 | ADR/GDR Movement Report- two way fungibility | AD Category-I banks | Monthly |
| 15 | Repatriation of Sales proceeds of underlying shares represented by FCCBs/GDRs/ ADRs | Custodian | Monthly |
| 16 | GDR/ADR underlying shares issued, re deposited and released monthly reporting | Custodian | Monthly |
| 17 | Monitoring of disinvestments by Overseas Corporate Bodies | AD banks | Monthly |
The said discontinuation of reports has been notified vide A.P. (DIR Series) Circular No. 05 dated November 13, 2020. The complete text of the notification may be viewed at the below link: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11994&Mode=0
Additional Resources:
- Foreign Exchange Management: Overseas Investment Rules
- MCA Mandates RBI Approval for Foreign Holding Companies Merging with Indian Subsidiaries
- Ministry of Finance Introduced Foreign Exchange Management Non Debt
- RBI Discontinues Monthly Reporting Requirement for Liberalised Remittance Scheme
- Foreign Portfolio Investment FPI India Trends Vs FDI
- RBI Launches Mobile App for Retail Direct, Fintech Repository, and PRAVAAH Portal