RBI Circular – Discontinuation of Reports and Returns Under FEMA
The Reserve Bank of India (“RBI”) on November 13, 2020, issued a circular regarding the discontinuation of certain Reports & Returns under the Foreign Exchange Management Act, 1999. This initiative has been taken on account of ease of doing business and to reduce the cost of compliance for concerned entities. A total of 17 reports and returns have been discontinued with immediate effect.
The said Reports and Returns are as follows:
- A category-wise transaction where the amount exceeds $5000 per transaction.
- Category-wise, transaction-wise statement where the amount exceeds $25,000 per transaction.
- Statement of Purchase transactions of $10,000 and above (including transactions of their franchisees).
- Extension of Liaison Offices (LOs).
- Extension of Project Offices (POs).
- FII/FPI daily: Daily inflow/outflow of the foreign fund on account of investment by FPIs.
- 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.
- FVCI reporting: Inflows/outflows of remittances on account of investments by Foreign Venture Capital Investor (FVCIs) and Market value of Investments made by FVCIs.
- Reporting of Inflow/Outflow details in respect of Mutual Fund by Asset Management Companies.
- Market value of FII Investment in India on fortnightly basis.
- Market value of FII Investment in India on Monthly basis.
- FII holdings as a percentage of floating stock.
- Form DRR for Issue/transfer of sponsored/unsponsored Depository Receipts (DRs) -only Hardcopy filing is being discontinued.
- ADR/GDR Movement Report – two-way fungibility.
- Repatriation of Sales proceeds of underlying shares represented by FCCBs/GDRs/ADRs.
- GDR/ADR underlying shares issued, redeposited, and released monthly reporting.
- Monitoring of disinvestments by Overseas Corporate Bodies.
To read the full RBI circular, please click on the link