Master Direction – Reporting under Foreign Exchange Management Act, 1999 (Updated as on September 16, 2024)

RBI/FED/2015-16/13 FED Master Direction No.18/2015-16 January 1, 2016 (Updated as on September 16, 2024*) (Updated as on June 20, 2024*) (Updated as on May 12, 2023*) (Updated as on September 30, 2022*) (Updated as on August 22, 2022*) (Updated as on June 09, 2022*) (Updated as on June 08, 2021*) (Updated as on September 18, 2019*) (Updated as on July 10, 2019*) (Updated as on July 9, 2019*) (Updated as on April 4, 2019*) (Updated as on November 20, 2018*) (Updated as on August 01, 2018*) (Updated as on April 26, 2018*) (Updated as on April 12, 2018*) (Updated as on March 16, 2018*) (Updated as on February 02, 2018*) (Updated as on January 24, 2018*) (Updated as on December 20, 2017*) (Updated as on December 14, 2017*) (Updated as on May 15, 2017*) (Updated as on September 19, 2016*) (Updated as on July 07, 2016*) (Updated as on June 13, 2016*) (Updated as on May 24, 2016*) (Updated as on May 18, 2016*) (Updated as on May 5, 2016*) (Updated as on April 13, 2016*) (Updated as on March 23, 2016*) (Updated as on February 11, 2016*) To, All Authorised Persons Madam/ Sir, Master Direction – Reporting under Foreign Exchange Management Act, 1999 Foreign Exchange Management Act, 1999 (FEMA) is administered through the authorised persons and is based on the declarations and averments made to them by persons while undertaking the transactions. The Reserve Bank, therefore, has prescribed various reports and forms under FEMA to be submitted by/ through Authorised Persons/ Authorised Dealer Category – I Banks/ Authorised Banks. Accurate compilations and timely submission of these reports are of critical importance as they not only act as a supervisory tool but also help in fine-tuning the policies relating to foreign exchange transactions regulated under FEMA. 2. The various reports/ forms required to be submitted under FEMA are consolidated under this Master Direction.3. The Master Direction will be updated from time to time as and when fresh instructions are issued. Yours faithfully, (Dr. Aditya Gaiha) Chief General Manager-in-Charge * Since this Master Direction has been significantly amended, it has been replaced rather than showing the changes in track mode for reader convenience.Part Subject Page No Part I: Remittance Facilities 1) Money changing Activity 04-22 2) Money Transfer Service Scheme (MTSS) 23-28 3) Rupee Drawing Arrangements (RDA) 29-41 Part II: Liberalised Remittance Scheme (LRS) 42-43 Part III: LO/BO/PO 44-49 Part IV: Foreign Investment 50-61 Part V: External Commercial Borrowing 62-77 Part VI: Non-Resident Foreign Accounts 78-82 Part VII: Immovable Property 83-85 Part VIII: Overseas Direct Investment 86-114 Part IX: Trade 1) Exports 115-126 2) Imports 127-132 Part X Guarantees 133 Part XI Compounding 134-140 Part XII Licensing of NBFCs as Authorised Dealer 141-143 Category-II under section 10(1) of FEMA 1999 Part XIII Late Submission Fee (LSF) Matrix for Reporting 144-146 Delays, wherever applicable 3Part I: Remittance Facilities 1) Money Changing Activity Authorised Money Changers (AMCs) are entities, authorised by the Reserve Bank under Section 10 of the Foreign Exchange Management Act, 1999. An AMC is a Full-Fledged Money Changer (FFMC). In addition to Authorised Dealer Category -I Banks (AD Category– I Banks) and Authorised Dealers Category - II (ADs Category–II), Full Fledged Money Changers (FFMCs) are also authorised by the Reserve Bank to deal in foreign exchange for specified purposes in order to widen the access of foreign exchange facilities to residents and tourists and ensuring efficient customer service through competition. FFMCs are authorised (a) to purchase foreign exchange from non-residents visiting India and residents; and (b) to sell foreign exchange for certain approved purposes. AD Category –I Banks / ADs Category – II / FFMCs may appoint franchisees to undertake purchase of foreign currency. Prescribed Forms/ Returns: (a) Application Form for FFMC licence under section 10(1) of FEMA, 1999 (Annex I) (b) The Reserve Bank permits AD Category – I Banks, ADs Category - II and FFMCs to enter into [franchisee (also referred as agency)] agreements at their option for the purpose of carrying on Restricted Money Changing (RMC) business i.e. conversion of foreign currency notes, coins or travellers' cheques into Indian Rupees. They are required to obtain information from the franchisee in Form RMC-F (Annex II), scrutinise the same and keep it on record. (c) Registers in respect of the money-changing transactions to be maintained by AMCs: (i) Daily Summary and Balance Book (Foreign currency notes / coins) in form FLM 1 (Annex-III). (ii) Daily Summary and Balance Book (Travellers’ cheques) in form FLM 2 (Annex-IV). (iii) Register of purchases of foreign currencies from the public in form FLM 3 (Annex-V). (iv) Register of purchases of foreign currency notes / coins from authorized dealers and authorized money changers in form FLM 4 (Annex-VI). (v) Register of sales of foreign currency notes / coins and foreign currency travellers’ cheques to the public in form FLM 5 (Annex-VII). 4(vi) Register of sales of foreign currency notes / coins to authorized dealers / Full Fledged Money Changers / overseas banks in form FLM 6 (Annex-VIII). (vii) Register of travellers’ cheques surrendered to authorized dealers / authorized money changers / exported in form FLM 7 (Annex-IX). (viii) FLM 8 (Annex-X). (ix) 1 (x) Quarterly Statement showing summation of Foreign Currency Account opened in India out of export proceeds of Foreign Currency Notes/ encashed Travellers’ Cheques (Annex XII). (xi) Annual Statement of the amount of foreign currency written off during a financial year (Annex XIII). (xii) Proforma giving Information about New Directors/ Change of Directors of the FFMC / non-bank AD Category – II (Annex XIV). 1 Deleted vide AP (DIR Series) Circular No.05 dated November 13, 2020. Prior to deletion, it read ‘Monthly Statement of Purchase transactions of USD 10,000 and above (Annex XI)’ 5Part I: Annex-I Application Form for FFMC licence under section 10(1) of FEMA, 1999 1. Full name of the applicant 2. Address in full 3. Name of location/s to where the applicant proposes to conduct Money Changing Business (Please enclose copies of the Licences under Shops and Establishment Act) 4. (a) Date of establishment of the company (b) Name/s and address/es of the Directors of the company 5. Copy of the Certificate of Registration (Certificate of Incorporation & Certificate of Commencement of Business) of the company 6. Copy of Memorandum of Association together with a letter indicating the clause which provides for taking up money changer's business. 7. Confidential report from the applicant's bank/s in CIR format. 8. Net Owned Funds A copy of the latest Audited Balance Sheet of the applicant company together with a certificate from their Statutory Auditors certifying their Net Owned Funds as on the date of application and calculation thereof is to be enclosed. 9. Declaration to the effect that the company or any of its directors are not under investigation/adjudication of any law enforcing agencies, such as DoE/DRI and also that no criminal proceedings filed by Crime Investigation Agencies are pending against the company or any of its directors. 10. Undertaking to post competent staff to handle the money changer's business. 11. Name, designation of persons authorised to deal in foreign exchange. 13. A brief write up of the activities of the applicant/nature of business. 14. Whether the applicant had applied earlier for FFMC / RMC licence. If so, the particulars thereof. 615. Any other particulars / special reasons the applicant may wish to state in support of the application. We undertake that in the conduct of money changing business, we shall at all times abide by the rules/ regulations/ orders/ directions/ notifications which Reserve Bank may from time to time issue in this behalf. Place: Date: Signature of the applicant with seal Enclosures: 1. Bankers' confidential Report 2. Attested copies of audited accounts for the past 3 years. Note: Single branch FFMCs shall have Net Owned Funds not less than Rs.25 lakh while FFMCs intending to operate through more than one branch will have to maintain Net Owned Funds not less than Rs.50 lakh. 7Part I: Annex-II Form RMC-F 1. Name of the AD/ FFMC 2. Name and address of the franchisee Details of locations (i) (ii) (iii) Etc. 3. Existing business activity of the franchisee 4. Net Owned Funds 5. Shop & Establishment/ other applicable municipal certification in favour of the franchisee 6. Conduct certificate of the franchisee from the local police authorities. (certified copy of Memorandum and Articles of Association and Certificate of Incorporation in respect of incorporated entities) 7. Declaration regarding past criminal case, if any, cases initiated/ pending against the franchisee or its directors/ partners by any law enforcing agency, if any 8. PAN Numbers of the franchisee and its directors/ partners 9. Arrangements in place to surrender the foreign exchange 10. AML, Reporting, Audit and Inspection arrangements We declare that while selecting the franchisees adequate due diligence has been carried out and that such entities have undertaken to comply with all the provisions of the franchising agreement/prevailing RBI regulations regarding money changing. Place: Date: Name: __________________________ Designation: _____________________ 8Part I: Annex-III FLM 1 Daily Summary and Balance Book (Foreign Currency notes/coins) Date: _________________ Pound U.S. Euro Yen Other Sterling Dollar (Pl. specify) I. Opening Balance II. Add: Purchases (i) Purchases from the public (ii) Purchases from authorized dealers, money- changers and franchisees (iii) Import from abroad for replenishment of stock Total purchases Total (I + II) III. Less Sales: (i) Sales to public (ii) Sales to authorized dealers/full- fledged money changers (iii) Despatched abroad for realization Total Sales IV. Closing Balance (I + II - III) N.B: In cases where forged notes etc. are detected, the closing balance may be adjusted with remarks indicating the amount and the reasons for writing off. Date: Name: __________________________ Designation: _____________________ 9Part I: Annex-IV FLM 2 Daily Summary and Balance Book (Travellers’ cheques) Date: _______________ Pound U.S. Euro Yen Other Sterling Dollar (Pl. specify) I. Opening Balance II. Add: 1) Purchases from the Public 2) Purchases from others (including fresh stock received) Total (I + II) III. Less :1) Sales to public 2) Surrender to ADs/FFMCs 3) Exports IV. Closing Balance (I + II - III) Pre-paid cards sold: No. Amount. Date: Name: __________________________ Designation: ______________________ _______________________________________________________________ Note: - Stock register of blank travellers’ cheques/ smart cards in various denominations obtained from authorized dealers/ TC issuers/ other agencies for sale to travellers under Basic Travel Quota or for business visit should be maintained and balanced on a daily basis. 10Part I: Annex-V FLM 3 Register of purchases of foreign currencies from the public Date Sl. Name of Nationality Details of Pound U.S. Euro No. the & Identification Sterling Dollar tenderer Full documents Address 1. 2. 3. 4. 5. 6. 7. 8. Japanese Others Rate Rupee Encashment Remarks Yen (Pl. Equivalent certificate specify) No. and date 9. 10. 11. 12. 13. 14. NOTES:(1) If the money-changer is dealing in a large number of currencies, two or more registers currency-wise or otherwise may be maintained, as convenient. (2) If traveller cheques are purchased, the prefix, "TC" may be indicated in the amount column. (3) If more than one currency is purchased from the same tenderer, separate entries may be made. Date: Name: __________________________ Designation: _____________________ 11Part I: Annex-VI FLM 4 Register of purchases of foreign currency notes/ coins from Authorised dealers and authorised money-changers Date Sl. Name and Currency Amount Rate Rupee Remarks No. address of the equivalent authorised dealer/ authorised money-changers from whom purchased 1. 2. 3. 4. 5. 6. 7. 8. Date: Name: _______________________________ Designation: __________________________ 12Part I: Annex-VII FLM 5 Register of sales of foreign currencies to the public Date Sl Name of Nationality & Details of Name of the Country/ Purpose Duration No the Full Address Identification sponsoring ies of visit of stay tenderer Document Organisation of visit abroad (No. of days) 1 2 3 4 5 6 7 8 9 Particulars of foreign currency Rate Rupee Commission Total Cash Remarks notes/ coins/ TCs/ pre-paid cards equivalent charged, if amount Memo any received No. & Date Name of Amount Amount in By By Currency in TCs/ Cash Cheq Notes/ cards ue coins 10 11 12 13 14 15 16 17 18 19 NOTES: (1) If the money-changer is dealing in a large number of currencies, two or more registers currency-wise or otherwise may be maintained, as convenient. (2) If more than one currency is sold, separate entries may be made (3) The columns 6 and 9 to be filled in case of release of exchange for business purpose Date: Name: _________________________ Designation: ____________________ 13Part I: Annex-VIII FLM 6 Register of sales of foreign currency notes/coins to authorised dealers/ full- fledged money changers/overseas banks Date Sl. Name and Currency Amount Rate Rupee Remarks No. address of Equivalent the received authorised dealer/ full fledged Money changer/ overseas bank to whom sold 1. 2. 3. 4. 5. 6. 7. 8. Note: - Necessary entries in the register should be made before the funds are taken out of the premises, not after delivery of funds. Date: Name: _______________________________ Designation: ___________________________ 14Part I: Annex-IX FLM 7 Register of travellers’ cheques surrendered to authorised dealers/authorised money changers/exported Date Sl. Name and address Travellers Amount Rate Rupee Remarks No. of the Authorised cheque Equivalent dealer/authorised No.(s) received money changer/TC issuer/authorised agent to whom sold 1. 2. 3. 4. 5. 6. 7. 8. Date: Name: __________________________ Designation: ______________________ 15Part I: Annex- X FLM 8 (For FFMCs) Summary statement of purchases and sales of foreign currency notes during the month of __________20 Name and address RBI Licence No.________ of money changer USD GBP EURO JPY Others (Specify) A. Opening balance Purchases of foreign currency notes from (a) Public (b) RMCs/FFMCs/ADs including imports. (c) Agents/Franchisees B. Total Purchases (a) + (b) + (c) Sales of foreign currency notes under (a) BTQ (b) Business Visits (c) Sales to other FFMCs/ADs including exports C. Total Sales [ (a) + (b) + (c) ] Closing balance (A+B - C) We hereby certify that the statement is a true and correct account of all transactions undertaken during the month in accordance with the Foreign Exchange Regulations. Place: (Signature of Authorized Official) Date: Stamp Name: ____________________ Designation: _______________ 16FLM 8 (For ADs Category-II) Summary statement of purchases and sales of foreign currency notes during the month of __________ Name and address RBI Licence No.________ of the Authorised Dealer Category-II____________________ USD GBP EURO JPY Others (Specify) A. Opening balance Purchases of foreign currency notes from (a) Public (b) RMCs/FFMCs/ADs including imports. (c) Agents/Franchisees B. Total Purchases (a) + (b) + (c) Sales of foreign currency notes Under (with purpose codes) (a) (i) BTQ /(ii) Private Visits (S0302) (b) (i) Business Visits/(ii) Business Travel (S0301) (c) Remittance by tour operators / travel agents to overseas agents / principals / hotels(S0306) (d) Film shooting(S1101) (e) Medical Treatment abroad(S0304) (f) Disbursement of crew wages(S1401) (g) Overseas Education(S0305) (h) (i)Fee for participation in global conferences and specialized training / (ii) Remittance for participation in international events / competitions (towards 17training, sponsorship and prize money)/ (iii) Remittance under educational tie up arrangements with universities abroad/(iv) Remittance towards fees for examinations held in India and abroad and additional score sheets for GRE, TOEFL etc./ (v) Employment and processing, assessment fees for overseas job applications/(vi) Skills / credential assessment fees for intending migrants/(vii) Visa fees /(viii) Processing fees for registration of documents as required by the Portuguese / other Governments/ (ix) Registration / Subscription / Membership fees to International Organizations (S1102) (i) Emigration Fees (S1202) (j) Emigration Consultancy Fees (S1006) (k) Sales to other FFMCs/ADs including exports C. Total Sales [(a) + (b) + (c) + (d) + (e) + (f) + (g) + (h)+ (i) + (j)+ (k)] Closing balance (A+B - C) We hereby certify that the statement is a true and correct account of all transactions undertaken during the month in accordance with the Foreign Exchange Regulations. Place: Date: (Signature of Authorised Official) Stamp Name: __________________________ Designation: _____________________ 182Part I: Annex- XI 2 Deleted vide AP (DIR Series) Circular No.05 dated November 13, 2020. Prior to deletion, it read as under: Statement of Purchase transactions of USD 10,000 and above for the month of Date of transaction Name and address of the person surrendering Amount the foreign currency Currency/ TCs Signature of Authorized Official with Seal 19Part I: Annex- XII Statement showing summation of Foreign Currency Account opened in India out of export proceeds of Foreign Currency Notes/ encashed Travellers’ Cheques for the quarter ended ___________ (Value in USD) Opening Value of Amount Of Column Amount Maximum Closing Remarks Balance in foreign realized in 3 amount remitted to TC balance balance in the currency foreign credited to issuing maintained on the Foreign Account notes/ currency Foreign organization any day in the Currency encashed Currency from TCs sold/ foreign Account TCs Account Debited for currency exported purchase of account foreign during the currency notes quarter from ADs 1. 2. 3. 4. 5. 6. 7. 8. Certified that the above particulars are correct as per our records. Name and address of the AD Category - I Signature of Authorized Official of the AD Category - I with Seal 20Part I: Annex- XIII Statement of the amount of foreign currency written off during the financial year ended ______________ Name of the FFMC/ AD Category-II: A. Total amount written-off (in equivalent USD): B. Details of the amount written-off: Sl. No. Date of write-off Amount of On account of * Approved by foreign currency FFMC/AD (with currency- Category-II/ wise break-up) Reserve Bank 1. 2. 3. 4. 5. Total: * Please indicate whether on account of being found to be fake or forged/ theft/ lost in transit, etc. Signature of Authorized Official with Seal 21Part I: Annex XIV Proforma Information about New Directors / Change of Directors of the FFMC / non-bank AD Category – II 1. Name : 2. Designation : 3. Nationality : 4. Age : 5. Business Address : 6. Residential Address : 7. Educational / professional qualifications : 8. Line of business or vocation : 9. Name/s of other companies in which the person has held the post of : Chairman / Managing Director / Director / Chief Executive Officer 10. (i) Whether associated as promoter, Managing Director, Chairman : or Director with any other FFMC / AD Category - II? (ii) If yes, the name/s of the company/ies : 11. (i) Whether prosecuted/convicted for any economic offence either in the individual capacity or as a partner / director of any firm / company : (ii) If yes, particulars thereof : 12. Experience in money changing business (number of years) : 13. Equity shareholding in the company No. of shares : Face value : Percentage to total equity share capital of the company : Signature: Name: Date: Designation: Place: (Chief Executive Officer) Company: 222) Money Transfer Service Scheme (MTSS) Money Transfer Service Scheme (MTSS) is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances into India such as remittances towards family maintenance and remittances favouring foreign tourists visiting India are permissible. No outward remittance from India is permissible under MTSS. The system envisages a tie-up between reputed money transfer companies abroad known as Overseas Principals and agents in India known as Indian Agents who would disburse funds to beneficiaries in India at ongoing exchange rates. The Indian Agent is not allowed to remit any amount to the Overseas Principal. Under MTSS the remitters and the beneficiaries are individuals only. The reporting requirements are given below: a. List of Sub Agents, Overseas Principal-Indian Agent wise (Annex XV): Indian Agents should forward a full updated list (names and addresses and their location) of their Sub Agents by e-mail, in excel format, in soft form, to the concerned FED Regional Office, whenever they appoint/ remove any Sub Agent. 3Indian Agents who are non-bank Authorised Category- II / FFMC shall submit the same in the APConnect application (https://apconnect.rbi.org.in/entity). Indian Agents should visit the RBI website and verify the list of Sub Agents on regular intervals and any aberration to the list observed may immediately be brought to the notice of the concerned FED ROs. Further, Indian Agents should confirm the veracity, on quarterly basis, of the list placed on RBI website to their respective FED ROs, either in form of a letter or by email, within 15 days from the end of a quarter. b. List of additional locations: To be furnished by the Indian Agents to the ROs concerned of the FED of the Reserve Bank, under whose jurisdiction their registered offices fall, on quarterly basis, within 15 days from the close of the quarter to which it relates. c. Quarterly statement of the quantum of remittances received (Annex XVI): To be submitted by the Indian Agents 4through Centralised Information Management System (CIMS) (URL: https://sankalan.rbi.org.in) within 15 days from the close of the quarter to which it relates. In case no remittance was received during a quarter, a ‘NIL’ report shall be submitted. 3 Inserted vide A.P. (DIR Series) Circular No. 01 dated April 06, 2023. 4 Inserted vide A.P. (DIR Series) Circular No.15 dated March 05, 2024. Prior to modification it read as: “using the eXtensible Business Reporting Language (XBRL) (https://secweb.rbi.org.in/orfsxbrl)” 23d. Half-yearly statement of the collateral held as at the end of June and December every year (Annex-XVII): To be furnished by the Indian Agents to the ROs concerned of the FED of the Reserve Bank, under whose jurisdiction their registered offices fall, within 15 days from the close of the half-year to which it relates. 5Indian Agents who are non- bank Authorised Category- II / FFMC shall submit the same in the APConnect application within the specified timeline. All The Authorised persons who are Indian agents under MTSS are required to make all their correspondence with Reserve Bank including submission of prescribed statements to the Regional Office of the Foreign Exchange Department of the Reserve Bank, under whose jurisdiction their registered offices function 5 Inserted vide A.P. (DIR Series) Circular No. 01 dated April 06, 2023. 24Part I: Annex XV Format for Sub Agents of Indian Agents of MTSS 1. Name of the Sub Agent 2. Sub Agent Category (AD Cat-I bank/ AD Cat-II/ Other Scheduled Commercial Bank/ Full Fledged Money Changer/ Department of Posts/ Registered NBFC/ Others) 3. Address of the registered/corporate/administrative office with telephone number/s, Fax number/s and e-mail id/s. 4. Registered with 5. Registration Number 6. Details of Registration (papers to be attached as at Annex XV a) 7. PAN Number (copy as at Annex-XV a) 8. Name/s of Banker/s and Bank Account Number/s (enclosures as at Annex-XV a) 9. Details (Name, Nationality, Residential address, Controlling interest in any other company, PAN Number) of each promoter with more than 10% equity holding 10. Paid up capital in ₹ and Number of shares 11. Accounts certified by which Chartered Accountant? Details (Enclosures as at Annex-XV a) 12. Whether prosecuted/ convicted for criminal/ economic offence? If yes, particulars thereof (Enclosures as at Annex- XV a) 13. Whether the Sub Agent is solvent as on date 14. Details (Name, Designation, Nationality, Residential address, PAN No., Name/s of other company/ies in which the person has held any post, Details of equity shareholding in the company, if any) of Chairman/Managing Director/Director/Chief Executive Officer (Details as at Annex-XV a) Note: With reference to point 9, ownership of the Sub Agent should be detailed up to the last layer of equity holding ending in mentioning the name of the individual/ entity that owns beneficial interest in the company. Date: Signature of Chartered Accountant Place: Signature of Managing Director 25Part I: Annex XV a List of Certified copies of Documents to be submitted 1. Certificate of Incorporation 2. Memorandum (up-to-date) and Articles of Association 3. Board resolution for conducting money transfer activities, submission of application and its contents including authorization of an official to make the application. 4. Details of associates, group companies, etc. 5. PAN Card/s of the Director/s. 6. Bank Account details and sealed confidential reports from banks. 7. A certificate from Chartered Accountant certifying Net Owned Funds 8. Balance Sheet and P&L A/c statement for the last three years. 9. Business plan for the next three years. 10. Conduct certificate from the local police authorities. 11. Declaration regarding past criminal cases, cases initiated/ pending against the company or its Directors by any law enforcing agencies. 12. Photographs of the Directors and key persons. 13. Information about the management. 14. Shop and establishment certificate/ other municipal certificate. 26Part I: Annex XVI Statement showing details of quantum of remittances received through Money Transfer Service Scheme during the quarter ended __________________ Name of the Indian Agent ______________________________________ Name of the Overseas Total quantum of remittances received in INR equivalent Principal US $ Note: This statement is required to be submitted 6by the Indian Agents through Centralised Information Management System (CIMS) (URL: https://sankalan.rbi.org.in) within 15 days from the close of the quarter to which it relates. 6 Inserted vide A.P. (DIR Series) Circular No.15 dated March 05, 2024. Prior to modification it read as: “using the eXtensible Business Reporting Language (XBRL) system (https://secweb.rbi.org.in/orfsxbrl)” 27Part I: Annex XVII Statement of Collateral kept by Indian Agents Name of the Indian Agent __________________________ Name of the Total quantum of Amount of Collateral kept in Last review of Overseas remittances received during collateral held in various forms adequacy of Principal the past 6 months in US $ US (Foreign Currency collateral along with $ Deposit/ Bank observations Guarantee) Note: This statement as at the end of June and December every year is required to be submitted to the Regional Office concerned of the Foreign Exchange Department of the Reserve Bank within 15 days from the close of the half year to which it relates. 7 Indian Agents who are non-bank Authorised Category- II / FFMC shall submit the same in the APConnect application within the specified timeline. 7 Inserted vide A.P. (DIR Series) Circular No. 01 dated April 06, 2023. 283) Rupee Drawing Arrangements (RDA) Under the Rupee Drawing Arrangements (RDAs), cross-border inward remittances are received in India through Exchange Houses situated in Gulf countries, Hong Kong, Singapore, Malaysia (for Malaysia only under Speed Remittance Procedure) and all other countries which are FATF compliant (for all other countries which are FATF compliant only under Speed Remittance Procedure). The reporting requirement is given below: a. Application (Annex XVIII): AD Category–I banks should apply to the Reserve Bank in the form provided at Annex XVIII with necessary documents the first time they enter into RDAs with non-resident Exchange Houses from Gulf countries, Hong Kong, Singapore, Malaysia and all other countries which are FATF compliant, for opening and maintaining in India the Rupee vostro accounts of those non-resident Exchange Houses. b. Statement A (Annex XIX): This monthly Exchange House-wise statement is designed to elicit details of operations in Rupee/ foreign currency vostro accounts of Exchange Houses. This statement should be critically examined to ascertain whether funds held in the account are adequate to cover estimated pipeline debits. The Top Management of the ADs Category-I may work out the pipeline data and set their own limits and the adherence to the limits set should be informed to the Top Management on a quarterly basis. c. Statement B (Annex XX): This is a consolidated half-yearly statement showing position of Rupee/ foreign currency vostro accounts of Exchange Houses which are to be closed/ are in the process of closure. d. Statement C (Annex XXI): This is a monthly statement giving information regarding Exchange House’s account held at overseas branches of Indian banks under Draft Drawing Arrangement (DDA)/ Non-DDA procedures for holding collection proceeds and additional collaterals. e. Statement D (Annex XXII): This monthly statement provides information about operations in the foreign currency vostro account of the Exchange House. Note - While statements A to D (Annex XIX to XXII) are not required to be submitted to the Reserve Bank, ADs Category-I should prepare these statements and cause inspections at the prescribed periodicities. The relative statements/ reports should invariably be submitted to their respective Top Management with suitable explanatory notes indicating corrective measures taken/ being initiated wherever necessary. 29f. Statement E (Annex XXIII): This quarterly statement on total remittances received every quarter is required to be submitted 8 through Centralised Information Management System (CIMS) (URL: https://sankalan.rbi.org.in) before 15th of the succeeding month to which the quarter relates. In case no data is to be furnished, AD Category – I banks shall upload a ‘NIL’ report in CIMS. g. Annual Review: AD Category-I banks should submit to the respective Regional Office of the Foreign Exchange Department of the Reserve Bank of India, under whose jurisdiction the registered office of the applicant falls by 30th June every year an annual review note covering the period January 1 to December 31 of the previous year, on the vostro accounts of the Exchange Houses maintained by them under the Rupee/ Foreign Currency Drawing Arrangements (RDAs/ FcyDAs) duly approved by their Board. The Review Note should cover various aspects like (a) credit-worthiness of the Exchange House (based on financial statements and market reports), (b) validity of licenses of Exchange Houses and compliance of home country KYC/ AML /CFT Guidelines by Exchange Houses (c) financial losses suffered if any by the AD category –I bank on account of transactions, events, disputes, etc., (d) business turnover separately under each arrangement, (e) funding arrangements in respect of vostro accounts, (f) half-yearly inspection of the account of the Exchange House, (g) supervision (system in vogue to monitor operations in the account), (h) internal control and risk management system, (i) overdrafts and interest collected. An extract of directions, if any issued by the Board should be forwarded to the Reserve Bank along with the Annual Review note. While submitting the annual review note, the particulars such as (a) complete particulars of Drawing Arrangements (DDA/ NonDDA / Speed Remittance) that the AD Category-I banks have with Exchange Houses with the date of approval by RBI and opening of the vostro accounts (b) dates of termination of Drawing Arrangements, if any (including Drawing Arrangements which could not be concluded), and (c) number of drawee branches under each arrangement should be included. Note: Authorised Dealer Category I banks are required to make all their correspondence with Reserve Bank including submission of prescribed statements to the Regional Office of the Foreign Exchange Department of the Reserve Bank, under whose jurisdiction their registered offices function. 8 Inserted vide A.P. (DIR Series) Circular No. 09 dated December 22, 2023. Prior to modification it read as: “using the eXtensible Business Reporting Language (XBRL) system (https://secweb.rbi.org.in/orfsxbrl)” 30Part I: Annex XVIII Application for obtaining permission to enter into Rupee/ Foreign Currency Drawing Arrangements with Exchange Houses (a) The application for obtaining permission to enter into Rupee / Foreign Currency Drawing Arrangements with Exchange Houses should be completed and submitted in the prescribed format (given below), to the respective Regional Office of the Foreign Exchange Department of the Reserve Bank of India, under whose jurisdiction the registered office of the applicant falls. The application should be signed by the General Manager (or an officer of equivalent rank), International Banking Division/ Foreign Department of the applicant AD Category-I bank. (b) Documentation: AD Category-I banks should submit the following documents along with the application: (i) Certified copy of the license (English version) issued by the Central Bank/ any other Supervisory Authority of the country where the Exchange House is situated. (ii) Certified copy/ies of license(s) issued by Municipal Authorities and / or any other Government regulatory/ controlling authority in the country of the Exchange House. (Applicable to the Exchange Houses in U.A.E.) (iii) A Certificate from a Chartered Accountant, regarding compliance with Know Your Customer/Anti Money Laundering/Combating the Financing of Terrorism norms in the home country by the Exchange House. 9(iv) Certified copies of confidential opinion/ report recorded by Embassy of India in the country concerned/ bankers of the Exchange House/ correspondent banks etc., subject to the satisfaction of the Board of the bank concerned. (v) Audited Balance Sheets and Profit and Loss Account Statements of the Exchange House for the previous three years. (vi) Copy of the Board Resolution of the AD Category-I bank for entering into the arrangement. (vii) Copy of letter from the Exchange House regarding the proposal to enter into the Rupee/ Foreign Currency Drawing Arrangement along with the provision of collateral, wherever necessary. 9 Inserted with effect from April 12, 2018 31Part I- Particulars of the applicant bank and its existing arrangement(s), if any 1. Name of the applicant bank 2. Existing arrangements(s) (i) Name of Exchange House (EH) (ii) Since (iii) No. of drawee branches (iv) Business turnover for the previous three calendar years 3(a) Details of branches having multiple EH drawing arrangements 3(b) Furnish comments with regard to adequacy of internal control systems put in place at those branches. (Attach a sheet if necessary) 4. Financial losses sustained if any during last five years (April-March) (i) Year (ii) Name of the EH (iii) Amount of loss (iv) Particulars of loss (v) Ref. Nos. and dates lodged with RBI and RBI’s permission to write off 5. Financial disputes if any with EH(s) pending settlement (i) Name of EH (ii) Expected amount of loss (iii) Particulars of loss (iv) Ref. No. & dated of report lodged with RBI 6. Furnish an EH-wise summary of the major irregularities observed in the existing drawing arrangements during inspections by Internal Auditors, RBI Inspectors as also Overseas Auditors indicating the corrective measures initiated by the bank. Part II- Particulars of the Exchange House for the proposed drawing arrangement 1(a) Name and address of the Exchange House with which the bank proposes to enter into RDA (b) Date of establishment of the EH (c) Furnish details of other Group companies of EH viz. name, management control, financial means and standing, etc. 2(a) Whether the EH has operative RDA with any other bank in India? (b) If yes, state the name/s of the bank/s 3. Furnish details of the management structure of the EH: (a) Status of EH (company, firm, joint-ventures, etc.) (b) With whom the management vests (c) Name, nationality and line of business of the promoters of the EH (d) Capital holding pattern (e) Whether the applicant bank will have any investment in EH? Furnish complete details (f) Whether the applicant bank will have any role in management of EH? Furnish details 4. Profit earned/loss sustained by the EH during the previous three calendar years 325. Particulars of license issued by the Central Bank/ Supervisory Authority of the country concerned a) License No b) Date of issue c) Validity period d) Special conditions, if any 6. Particulars of licenses issued by Municipal Authorities and/or any other Government regulatory/ controlling authority (Applicable to EHs in UAE) a) License No b) Date of issue c) Validity period d) Special conditions if any 7. Confidential opinion in brief recorded by a) Embassy of India in the country b) Bankers of the EH i) -------------------------------------- Name of the banker ii) ------------------------------------ Name of the banker 8. Is the applicant bank fully satisfied about a) the competence of the company/ firm/ people managing the EH b) the financial strength of the shareholders of the EH c) the financial strength of the EH d) the internal control systems operating in EH with regard to issue of drafts? 9. Furnish details of collateral arrangements negotiated with the EH (viz. amount of deposit, bank guarantee, etc.) and the justification thereof. Part III- Details of the proposed arrangement 1. Details/description of proposed arrangement 2(a) Reasons for entering into RDA (b) Projections of business turnover (quantify monthly projections) 3. The procedure under which the proposed RDA will be conducted (DDA/Non-DDA/Speed) 4. Name and address of the account maintaining Branch 5. No of drawee branches to be included in the proposed RDA 6. Whether EH is prepared to provide additional collateral cover equivalent to 7 days’ projected drawings? (Applicable to EHs which have not completed three years of its operations) 7. Any other information which the bank wishes to furnish in support of this application 33We hereby certify that – (i) the proposed arrangement with…………………………………………………… has been considered by us carefully taking into account the means and standing of the aforesaid EH and we are fully satisfied about the credentials and competence of the persons/ firms/ companies associated with the EH. (ii) Our branches already having DD drawing arrangements with other EH(s) and which are now proposed to be covered under the proposed arrangement with the above EH viz…………………………………………………………..… have sufficient expertise to handle business emanating from one more EH. (iii) We have put in place adequate internal control and risk management system which are working satisfactorily. (iv) The particulars given above are true and correct to the best of our knowledge and belief. ( ) General Manager Address Place Date 34Part I: Annex XIX Statement A Name of the Authorised Dealer Category-I: Full address: Name of the Exchange House: Particulars of operations in the account in the month of 1. Opening balance in the account (Cr/Dr) at the start of : _________________ 2. Total credits during the month : _________________ 3. Total debits during the month : _________________ 4. Closing balance (Cr/Dr) as on : _________________ 5. Estimated value of pipeline debits : _________________ (average 15 days drawings determined by progressive annual debit summations or by item No.3 above, whichever estimate is higher) 5 a. The amount of actual payments made by the principal: _____________ encashing branches/offices during the last one week (for adding to estimated pipeline) 6. Funds held abroad as collateral by the bank or under : _________________ DDA procedure. 7. Surplus /deficit in balances/collaterals in the account to: _________________ cover item No.5 8. State amount of counter-value foreign currency : Date Amount of recovered from the Exchange House against each specific foreign foreign credit afforded to the account during the month currency corresponding to the sale of Rupees made by the bank to recovered the Exchange House A) All payment advices received during the month from our paying branches have been taken into account for raising debits in the Rupee accounts of the Exchange House. B) We have received confirmation from our nostro account maintaining banks abroad for having credited counter value (foreign currency) funds to our nostro account before crediting Rupee funds to the account of the Exchange House. 35C) We confirm that the Rupee accounts of the Exchange Houses are conducted strictly in accordance with the guidelines issued by RBI and in terms of the relative agreements with the Exchange Houses concerned. D) Copy of the statement has been sent to the General Manager-in-charge, Foreign correspondent relationship and department / Officer in Charge, nostro account of our bank. E) We confirm that we have not received any adverse report / warning signals from the General Manager of our International Department whose accounts are maintained by us at the time of submitting the statement. Statement countersigned by certifying that it has been internally reviewed in the bank and the conduct of the account is considered satisfactory. _______________________ _________________________ Chief Manager of the Signature of the General Manager–in- Account Maintaining Branch C h a r ge of International Division /International Operations in the bank. 36Part I: Annex XX Statement B Consolidated statement of position of Exchange Houses’ accounts to be closed/ under closure (to be submitted by the Account maintaining office through the International Division) Sr. Name of Centre/ Opening Credits Debits Closing Any Any When Remarks No. the Country balance if any, if any, balance collateral other the (i.e. brief Exchange in the during during liability account resume of House account the the detected is likely correspondence month month to be to effect closure closed of the account and item in Col. 8) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. (a) Notice has been issued to all Exchange Houses regarding closure of the account. (b) There are no pipeline debits or items of recovery in respect of the above accounts save for what is stated in the Column No. 9. (c) The transactions in the accounts which are still operated are explained separately in the annexure under title name of each Exchange House (An explanatory remark sheet may be attached for the purpose). (d) The following accounts reflected above were closed during the month under review. ___________________ Chief Manager of Account Maintaining Branch Statement countersigned certifying that all the accounts reported above are under the concerned Exchange Houses have been duly suspended and closure of the accounts is being followed up ________________________________ General Manager-in-Charge of International Division/ International Operations in the AD Category-I 37Part I: Annex XXI Statement C Monthly statement regarding particulars of Exchange House account held at overseas branches of Indian banks (ADs Category-I) Name of the AD Category-I: Sr. Date of Name of Name of Nature Why it Balance Balance Outstanding No. Opening the the of was as at the as at the liabilities, if the Exchange overseas account opened end of end of the any account House branch (quote the month to H.O. previous which the authority month statement if any) relates 1. 2. 3. 4. 5. 6. 7. 8. 9. 38Part I: Annex XXII Statement D Name of the AD Category-I: _________________ No. of drawee branches: ______ Full Address: _____________________________ Type of Account: ____________ RBI Approval No. and date: _______ Name of the Exchange House: _______________ Particulars of operations in the Account during the month of __________ Sl Particulars (Amount in (Amount in No. USD) GBP) 1. Opening balance in the account (Cr/ Dr) at the start of the month to which the statement relates 2. Total credits during the month 3. Total debits during the month 4. Closing balance (Cr/ Dr) as on-------- 5. Estimated value of pipeline debits (Average 15 days drawings determined by progressing annual debit summations or by item 3 above, whichever estimate is higher) 5 (a) The amount of actual payments made by the principal encashing branches/ offices during the last one week (for adding to estimated pipeline) 6. Funds held abroad either as collateral by the bank or under procedure 7. Surplus/ deficit in balance (s)/ collaterals in the account to cover item 5 8(a) All payment advices received during the month from our paying branches have been taken into account for raising debits in the USD/ GBP accounts of Exchange House. (b) We confirm that the USD/ GBP accounts of Exchange Houses are conducted strictly in accordance with the guidelines issued by RBI and in terms of the relative agreements with the Exchange Houses concerned. (c) Copy of the statement has been sent to the General Manager-in-Charge foreign correspondent relationship and Department/ Office-in-Charge- Nostro account of our bank. (d) We confirm that we have not received any adverse report/ warning signals from the General Manager of our International Department about the Exchange House whose accounts are maintained by us at the time of filing the statement to RBI. Chief Manager of Account Maintaining Branch Statement countersigned certifying that it has been internally reviewed in the bank and that the conduct is considered satisfactory. General Manager-in-Charge of International Division/International Operations in the AD Category-I 39Part I: Annex XXIII Statement E Statement showing inflows of foreign currency through Exchange Houses during the quarter ended _______ (Amount in US Dollars) Sl. Name of No. of Foreign Inflows of foreign currency during Growth (+)/ Out flow No. Exchange branches currency current year deceleration foreign House and covered received Jan- April- Jul- Oct- (-) between currency country during last Mar June Sept. Dec last quarter (amount) year ended and the December quarter under report (%) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Note: (a) In column (5) to (8) inflows during the relevant quarter may be shown for the period beginning from the month of January each year. Just below these figures, please furnish in brackets data for the corresponding period of the previous year. The data in respect of Drawing Arrangements should cover inflow of funds both through RDA and Foreign Currency Drawing Arrangement. (b) Foreign currency should be shown in US dollars only. (c) Furnish amount (+) or (-) accompanied by an expression in percentage terms in column (9). (d) This statement should be signed by Chief of International Banking Department / Division of the Bank at Head Office, but not less than the grade of a DGM. (e) Please attach separate sheets furnishing details of deviations from the requirements as per declaration at Sr.no. (c), (f), (g), (h), (i) and (j) of Para 1 of SECTION III wherever necessary. Please also indicate the corrective action taken and the current status. We hereby certify that i) The above information has been compiled with reference to actuals and excludes the transactions in the pipeline. ii) The number of branches covered has increased from _______to _______since the submission of the last statement in view of the following reasons: iii) The growth/ deceleration in the inflows of foreign currency is due to the following reasons: iv) The outflows reported above are on account of _______________ and have the approval of RBI vide its letter No. ________________dated ________________. v) The above accounts had all through credit balances during the quarter under report. vi) Funds in the accounts were sufficient to cover estimated pipeline transactions. vii) Our overseas branches have not extended any line of credit / advances to above/ any of the above exchange houses 40viii) We are regularly submitting the statements 'A', 'B', 'C', and 'D', as at Annex- II, Annex-III, Annex-IV and Annex-V, respectively to the top management. ix) We have not come across any adverse features about operations in the account of the above / any of the above exchange houses and / or the Rupee and/ or Foreign Currency Drawing arrangement with these Exchange Houses: x) We are keeping a close watch on the means and financial standing of the above exchange houses(s) and as on the date of this report we have no adverse observations on record with us to report to the Reserve Bank. Name of the bank: Signature: Address: Name: Designation: Date: 41Part II: Liberalised Remittance Scheme Resident individuals are permitted to make remittances up to USD 250,000 per financial year for any permitted current or capital account transactions or a combination of both as per the regulations prescribed under the Foreign Exchange Management (Current Account Transactions) Rules, 2000, as amended from time to time, and the Foreign Exchange Management Act, 1999 (FEMA) or the rules or regulations framed thereunder. 10. 1. AD Category-I banks are required to furnish the transaction-wise information on a daily (T+1) basis i.e. by the close of business of the next working day, under LRS daily return on Centralised Information Management System (CIMS)11. In case no data is to be furnished, AD Category-I banks shall upload ‘Nil’ report. 12 AD banks may use the following purpose codes while reporting transactions under LRS: Sr. Items under LRS Corresponding FETERS No. purpose codes, if transaction is identified under LRS 1 Opening of foreign currency account abroad S0023 with a bank under LRS 2 Purchase of immovable property S0005 3 Investment in equity, debt, JV, WoS, S0001, S0002, S0003, ESOPs, IDRs S0004, S0021, S0022 4 Gift S1302 5 Donations S1303 6 Travel (business, pilgrimage, medical S0301, S0303, S0304, treatment, education, employment, personal) S0305 & S0306 7 Maintenance of close relatives S1301 8 Medical Treatment S1108 9 Studies abroad S1107 10 Emigration S1307 10 Deleted vide A.P. (DIR Series) Circular No. 16 dated September 06, 2024. Prior to deletion, it read as “AD Category – I banks are required to furnish the information on remittances made under the Liberalised Remittance Scheme (LRS) on a monthly basis, on or before the fifth of the following month to which it relates through Centralised Information Management System (CIMS) for which purpose they have been given user ID and password by the Reserve Bank. Where there is no data to be furnished, AD banks are advised to upload ‘nil’ figures in CIMS” 11 Inserted vide A.P. (DIR Series) Circular No. 16 dated September 06, 2024. 12 Inserted vide AP (Dir Series) Circular No. 50 dated February 11, 2016. 4211 ‘Others’ such as loan to NRI close relatives S0011, S0603 and health insurance 2. 13Transactions relating to LRS are required to be reported in Foreign Exchange Transactions Electronic Reporting System (FETERS) to Department of Statistics and Information Management (DSIM) under respective FETERS purpose codes (e.g. travel, medical treatment, purchase of immovable property, studies abroad, maintenance of close relatives; etc.) instead of reporting collectively under the purpose code S0023. This would help AD banks in classification of transactions for similar activity under single purpose code. Therefore, the purpose code S0023 may be read as ‘Opening of foreign currency account abroad with a bank.’ 3. 14AD banks should continue to ensure that the data pertaining to LRS transactions reported by them in FETERS tallies with the data reported by them in CIMS. 13 Inserted vide AP (Dir Series) Circular No. 50 dated February 11, 2016. 14 Inserted vide AP (Dir Series) Circular No. 50 dated February 11, 2016. 4315Part III: Establishment of Branch Office (BO)/ Liaison Office (LO) / Project Office (PO) or any other place of business in India by foreign entities Applications from foreign companies (a body corporate incorporated outside India, including a firm or other association of individuals) for establishing BO/ LO/ PO in India are considered by the AD Category-I bank as per the guidelines issued by Reserve Bank of India under the provisions of Foreign Exchange Management Act, 1999. The reporting requirements are given below: 1. Annual Activity Certificate i. The Annual Activity Certificate (AAC) (Annex I) as at the end of March 31 along with the audited financial statements including receipt and payment account are required to be submitted to the designated AD Category – I bank and a copy of the same to the Director General of Income Tax (International Taxation), Drum Shape Building, I.P. Estate, New Delhi 110002, by the BO/LO on or before September 30 of every year. In case the annual accounts of the BO/LO are finalized with reference to a date other than March 31, the AAC along with the audited financial statements may be submitted within six months from the due date of the Balance Sheet to the designated AD Category – I bank with a copy to the Director General of Income Tax (International Taxation), Drum Shape Building, I.P. Estate, New Delhi 110002. The AAC is to be submitted by the: a. BO/ LO concerned, in case of a sole BO/ LO; b. Nodal office of the BOs/ LOs, in case of multiple BOs / LOs - a combined AAC in respect of all the offices in India. ii. AAC from a Chartered Accountant showing the project status and certifying that the accounts of the project office have been audited and the activities undertaken 15 The AAC modified vide Notification No. FEMA 22 (R)/2016-RB dated March 31, 2016. 44are in conformity with the general/ specific permission given by Reserve Bank of India may be submitted by the PO to the designated AD Category-I bank. 2. AD Category-I bank shall send a consolidated list of all the BOs/LOs/ POs opened and closed by them during a month (as per Annex II), by the fifth of the succeeding month, to the General Manager, Reserve Bank of India, Central Office Cell, Foreign Exchange Department, Sansad Marg, New Delhi-110 001. 3. 16 4. 17 5. Entities from Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong, Macau or Pakistan which are setting up a BO/LO/PO in India should register with the state police authorities and are required to submit an annual report (as per Annex III) within five working days of the BO/LO/PO becoming functional to the Director General of Police (DGP) of the state concerned in which the BO/LO/PO has established its office; If there is more than one office of such a foreign entity, a separate annual report is required to be submitted to each of the DGP concerned of the state where the office has been established. 16 Deleted vide AP (DIR Series) Circular No.05 dated November 13, 2020. Prior to deletion, it read as “Extension of LOs granted by the AD Category-I banks must be intimated to the General Manager, Reserve Bank of India, CO Cell, New Delhi along with the reference number of the original approval letter and the UIN.” 17 Deleted vide AP (DIR Series) Circular No.05 dated November 13, 2020. Prior to deletion, it read as “Extension of PO has to be reported by the AD Category-I bank to the Central Office Cell, Foreign Exchange Department, Sansad Marg, New Delhi-110 001 .” 4518Annex I Annual Activity Certificate To whomsoever it may concern This is to certify and confirm that during the period from __________________ to ________________, the branch office/ liaison office/ project office with PAN No.(wherever applicable) ---------------------- of M/s__________________ (UIN-_______________ (wherever applicable) has/ have undertaken only those activities that have been specifically permitted by the Reserve Bank/ Authorised Dealer Category-I bank vide its approval letter/s No/s. ______________________________dated ______________and has/have complied with the terms and conditions specified in the above mentioned letter/s. For Project Office only 2. Project status: ______________________________________________________ ___________________________________________________________________ 3. This is to certify that during the period from _______________ to ______________, no inter-project funds transfer has been carried out without prior approval of the Reserve Bank. ______________________________ (Signature of the Statutory Auditor/s) (Name of the Chartered Accountant) ICAI Membership No.: Address: Place: Date: 18 Modified vide Notification No. FEMA 22 (R)/2016-RB dated March 31, 2016 4619Annex II Name of the AD bank: ________________________________ (a) Details of the BO/LO/PO opened during the month of __________ Sr. Name of the Country of Whether UIN Date of Address of No foreign entity Incorporation BO/LO/PO approval office in India opened (b) Details of the BO/LO/PO closed during the month of ____________ Sr. Name of the Country of Whether UIN Date of closure Address No foreign entity Incorporation BO/LO/PO closed of office in India 19 Inserted vide AP DIR Circular No. 69 dated May 12, 2016 47Part III: Annex III Format of Report to DG of Police Sl Particulars Details No 1 Details of the foreign Entity a. Name b. Address c. Date and place of incorporation d. email id or web address 2 Detail of office in India a. Type of Office – LO/BO/PO or for others indicate type b. Address c. Contact number d. Date of opening of office 3 Head of office in India a. Name b. Nationality c. Designation d. Address e. Passport particulars (i) Passport Number (ii) Place of Issue (iii) Date of Issue (iv) Date of expiry (v) Any other relevant information f. email address g. Landline number h. Mobile number 4 Whether all foreign nationals employed at LO/BO/PO are on E Visas 5 Whether the foreign nationals on E Visas have reported to mandatory authorities ie., police station etc If not, name of such national/ nationality along with relevant details and reasons for not complying with the requirement 6 List of personnel employed, including foreigners in Indian Office Foreigners Sl Name Parentage Nationality Age Email and Passport Designation/ Date of entry No mobile and visa profession into India and particulars particulars place of stay Indians Sl Name Parentage Nationality Age Email and Designation/ profession No mobile particulars 7 List of foreigners other than employees who visited Indian office in connection with activities of the company, with details 48Sl Name Parentage Nationality Age Purpose of visit Designation/ Date of No profession entry into India and place of stay 8 Projects/ contracts/ collaborations worked upon or initiated during the year along with details Sl Name of Name of Nature of Approximate Place/ area of Period of Approximate No Project/ Indian party business value of project/ work project/ number of contract/ activity project/ work work foreign work collaboration force required in India 9 List of equipment imported for business activities in India Sl Name/ technical details Purpose Date of Import into India/ place of No installation in India 10 Details of suppliers or services rendered to the Government Sector Sl Name of Supplier/ Service Name of Government Approximate value of supplies/ No Organisation/ Agency services 11 Details of places/ States visited along with dates/ accommodation used 12 Details of contact with Government Departments/ PSUs including names of officials 13 Details of contact with Civil Society Bodies/ Trusts/ Non-Government Organisations 49Part IV: Foreign Investment A. Reports 20Foreign Direct Investment (FDI) in India is undertaken in accordance with the 21Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 dated October 17, 2019 issued by Department of Economic Affairs, Ministry of Finance, Government of India (hereinafter referred to as NDI Rules, 2019) and Foreign Exchange Management (Mode of Payment and reporting of Non-Debt Instruments) Regulations 2019 issued vide Notification No. FEMA 395/2019-RB dated October 17, 2019 (hereinafter referred to as FEMA 395). NDI Rules, 2019, amongst other things, prescribes the modes of investments i.e. issue or acquisition of equity instruments as defined thereunder and the conditions, such as entry routes, sectoral caps, pricing guidelines etc. that may be complied with. FEMA 395 prescribes the manner/ mode of receipt of funds and reporting of the investments made under NDI Rules, 2019. 22All the reporting prescribed under this direction, except specifically stated otherwise, is required to be done through the Single Master Form (SMF) available on the FIRMS platform at https://firms.rbi.org.in.The user manual for reporting is available on the homepage of the FIRMS website as well as on the RBI website www.rbi.org.in. The format of the SMF and KYC report is available in the user manual. 23For the purpose of reporting in the SMF, an Indian entity which has received foreign investment or indirect foreign investment or expects to receive it, is required to file an entity master on the FIRMS platform. The procedure for filing the entity master is provided in the user manual as hosted on the FIRMS website as well as, is available on the RBI website www.rbi.org.in. The reporting formalities for foreign investment are given below: 1) Reporting for issue of capital instruments 20 Modified with effect from 07.11.17 vide by Notification FEMA 20(R)/2017-RB dated-07.11.17 notified vide G.S.R. N0.1374 (E) 21 Modified with effect from October 17, 2019 due to notification of NDI Rules, 2019 vide S.O. 3732(E) and notification of FEMA 395 vide G.S.R. 795(E). Prior to modification, it read as “Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017 issued vide Notification No. FEMA 20(R)/2017-RB dated November 07, 2017 [hereinafter referred to as FEMA 20(R)]. 22 Inserted with effect from 01.09.18 vide A.P.Dir (Series) Circular 30 dated June 7, 2018. 23 Inserted with effect from 28.06.2018 vide A.P.Dir (Series) Circular 30 dated June 7, 2018. 50a) Reporting inflows: (i) The actual inflows on account of issue of equity instruments shall be reported by the AD branch in the R-returns in the normal course. (ii) 24 25Omitted (iii) 26Omitted (v) 27Omitted (vi) 28 29Omitted b) Reporting of issue of equity instruments: (i)30Foreign Currency – Gross Provisional Return (FC- GPR)31:An Indian company issuing equity instruments to a person resident outside India, and where such issue is reckoned as Foreign Direct Investment under NDI Rules, 2019, shall report such issue in 24 Inserted with effect from 07.11.17 by Notification FEMA 20(R)/2017-RB dated 07.11.17 notified vide G.S.R. N0. 1374(E) dated 07.11.17. Prior to insertion it read as “An Indian company receiving investment from outside India for eligible securities under the FDI Scheme, shall report the details of the amount of consideration (including each upfront/ call payment) to the Regional Office concerned of the Reserve Bank through its AD Category I bank, not later than 30 days from the date of receipt in the ARF. Non-compliance with the above provision would be reckoned as a contravention under FEMA, 1999 and could attract penal provisions.” 25 Deleted with effect from 01.09.18 by Amendment Notification FEMA 20(R)(3)/2018 dated Aug 30, 2018 notified vide G,S.R.No. 823 (E). Prior to deletion it read as, “Advance Remittance Form (ARF) (Annex I): An Indian company which has received amount of consideration for issue of capital instruments and where such issue is reckoned as Foreign Direct Investment under FEMA 20®, shall report such receipt (including each upfront/ call payment) in ARF to the Regional Office concerned of the Reserve Bank, not later than 30 days from the date of receipt.” 26 Deleted with effect from 01.09.18 by Amendment Notification FEMA 20(R)(3)/2018 dated Aug 30, 2018 notified vide G,S.R.No. 823 (E). Prior to deletion it read as, “Know Your Customer (KYC) Form (Annex II): The following documents shall be submitted along with the ARF:(a) copy/ies of the FIRC/s (Foreign Inward Remittance Certificate evidencing the receipt of the remittance; (b) Know Your Customer (KYC) report on the non-resident investor from the overseas bank remitting the amount in the mentioned form” 27 Deleted with effect from 01.09.18 by Amendment Notification FEMA 20(R)(3)/2018 dated Aug 30, 2018 notified vide G,S.R.No. 823 (E). Prior to deletion it read as, “in case, the remittance receiving AD Category – I bank (AD bank) is different from the AD bank through which FCGPR is filed, the KYC check shall be carried out by the remittance receiving bank and the KYC report be submitted by the investee to the AD bank carrying out the transaction along with the Form FC-GPR.” 28 Inserted by AP (Dir) Series Circular No. 40 dated February 1, 2016. Prior to the insertion it read as “The forms can also be downloaded from the Reserve Bank's website https://rbidocs.rbi.org.in/rdocs/Forms/PDFs/KYC020411.pdf” 29 Deleted with effect from 01.09.18 by Amendment Notification FEMA 20(R)(3)/2018 dated Aug 30, 2018 notified vide G,S.R.No.823 (E). Prior to deletion it read as, “The filing/ reporting has to be done on the e-Biz platform at http://www.ebiz.gov.in (Home page → click on Services tab → Click on the appropriate RBI service hyperlink [RBI service page displayed] → Download eform).” 30 Inserted with effect from 07.11.17 by Notification FEMA 20(R)/2017-RB dated 07.11.17 notified vide G.S.R. N0. 1374(E) dated 07.11.17. Prior to insertion it read as “Foreign Collaboration - General Permission Route (FC- GPR) (Annex III): After issue of eligible securities (including partly paid securities to the extent called up), the Indian company has to file Form FC- GPR, through its AD Category-I bank, to the Regional Office concerned of the Reserve Bank under whose jurisdiction the registered office of the company is situated, not later than 30 days from the date of issue of shares.” 21Deleted with effect from 01.09.18 with the introduction of FIRMS application. 31 Deleted with effect from 01.09.18 with the introduction of FIRMS application. 51Form FC-GPR 32in the Single Master Form not later than thirty days from the date of issue of the equity instruments. Issue of ‘participating interest/ rights’ in oil fields shall be reported in Form FC-GPR. (ii) 33The following cases / instances of issue of shares / equity instruments to persons resident outside India by an Indian company will require filing of Form FC-GPR, (a) bonus or rights shares directly or on amalgamation/ merger/ demerger 34with an existing Indian company (b) equity instruments on account of a cross border merger in terms of Notification 389/ 2018 dated March 20, 2018; (c) shares against any funds payable by the Indian company to the person resident outside India; (d) sweat equity shares and shares issued upon exercise of employees stock option in terms of NDI Rules, 2019; (e) Issue of shares on conversion of convertible notes. 35 Omitted (iii)36Allotment of equity instruments under public issue 37or Qualified Institutional Placement (QIP) under the applicable SEBI Regulations need not be reported in Form FC-GPR (iv)38In case the Indian company issues equity instruments to a person resident outside India other than to the person resident outside India from who the inward remittance has been received, the form FC-GPR has to be filed along with the following documents: (a) KYC reports of both the remitter and the beneficial owner. (b) A no-objection certificate (NOC) from the remitter for issuing equity instruments to the beneficial owner mentioning their relationship. 32 Inserted with effect from 01.09.18 with the introduction of SMF. Prior to deletion it read as, “to the Regional Office concerned of the Reserve Bank under whose jurisdiction the Registered office of the company operates,” 33 Inserted with effect from 01.09.18 with the introduction of SMF. Prior to insertion it read as, “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/ lump sum technical know-how fee/ import of capital goods by units in SEZs has to be reported in Form FC-GPR” 34 Inserted with effect from April 10, 2023. 35 Deleted with effect from 07.11.17 by Notification FEMA 20(R)/2017-RB dated 07.11.17 notified vide G.S.R. N0. 1374(E) dated 07.11.17. Prior to deletion it read as “Non-compliance with the above provision would be reckoned as a contravention under FEMA and could attract penal provisions” 36 Inserted as a clarification. 37 Inserted with effect from April 10, 2023. 38 Inserted as a clarification. 52(c) A letter from the beneficial owner explaining the reason for the remitter making remittance on its behalf. (d) A copy of agreement / board resolution from the investee company for issuing equity instruments to a person other than from who the remittance has been received. (v) 39 40Omitted c) Annual Return on Foreign Liabilities and Assets: 41An Indian company which has received FDI or an LLP which has received investment by way of capital contribution in the previous year(s) including the current year, shall submit form FLA to the Reserve Bank on or before the 15th day of July of each year. Explanation: Year for this purpose shall be reckoned as April to March. 42The FLA return can be filed through a web-portal interface https://flair.rbi.org.in provided by RBI to the reporting entities for submitting “User Registration Form”. The successful registration on web-portal will enable users to generate RBI-provided login-name and password for using FLA submission gateway and would include system-driven validation checks on submitted data. The User Manual and FAQs present on the web-portal can be used for further guidance to file the FLA return. 2) Reporting for Transfer of equity instruments a) The actual inflows and outflows on account of transfer of shares shall be reported by the AD branch in the R-returns in the normal course. 39 Inserted by AP (Dir) Series Circular No. 40 dated February 1, 2016. Prior to the insertion it read as “The Form can also be downloaded from the Reserve Bank's website https://rbidocs.rbi.org.in/rdocs/Forms/PDFs/AP110214_ANN.pdf” 40 Deleted with effect from 01.09.18 with the introduction of FIRMS application. Prior to deletion it read as, “The filing/ reporting has to be done on the e-Biz platform at http://www.ebiz.gov.in” 41 Inserted with effect from 07.11.17 by Notification FEMA 20(R)/2017-RB dated-07.11.17 notified vide G.S.R. N0. 1374(E) dated 07.11.17. Prior to insertion it read as “All Indian companies which have received FDI and/ or made FDI abroad in the previous year(s) including the current year, should file the annual return on Foreign Liabilities and Assets (FLA) in the soft form to the Reserve Bank, Department of Statistics and Information Management, Mumbai by July 15 every year.” 42 Modified with vide A.P. Dir Series Circular No. 37 dated June 28, 2019 on Annual Return on Foreign Liabilities and Assets- Reporting by Indian companies. Prior to modification, it read as “The FLA return is available on the RBI website www.rbi.org.in → Forms category → FEMA Forms) along with the related FAQs (www.rbi.org.in → FAQs category → Foreign Exchange).” 53b) 43Foreign Currency-Transfer of Shares (FC-TRS) 44: 1) Form FCTRS is required to be filed for transfer of equity instruments45 in accordance with NDI Rules, 2019, between: (i) a person resident outside India holding equity instruments in an Indian company on a repatriable basis and person resident outside India holding equity instruments on a non-repatriable basis; and (ii) a person resident outside India holding equity instruments in an Indian company on a repatriable basis and a person resident in India, The onus of reporting is on the resident transferor/ transferee or the person resident outside India holding equity instruments on a non-repatriable basis, as the case may be. 2) Transfer of equity instruments in accordance with NDI Rules, 2019 46between a person resident outside India holding equity instruments on a non-repatriable basis and person resident in India is not required to be reported in Form FC-TRS. 3) Transfer of equity instruments on a recognized stock exchange by a person resident outside India as prescribed under NDI Rules, 2019 has to be reported by such person in Form FC-TRS. 4) Transfer of equity instruments prescribed in Rule 9(6) of NDI Rules, 2019 viz., payment on deferred basis, shall be reported in Form FC-TRS to the AD bank on receipt of every tranche of payment. The onus of reporting shall be on the resident transferor/ transferee. 5) Transfer of ‘participating interest/ rights’ in oil fields shall be reported in Form FC-TRS. 43 Inserted with effect from 07.11.17 by Notification FEMA 20(R)/2017-RB dated 07.11.17 notified vide G.S.R. N0. 1374(E) dated 07.11.17. Prior to insertion it read as “Foreign Collaboration-Transfer of Shares (FC-TRS) (Annex IV): Reporting of transfer of eligible securities between residents and non-residents and vice- versa is to be made in Form FCTRS. The Form FC- TRS should be submitted to the AD Category – I bank, within 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. However, the onus of reporting the purchase of shares by non-residents on the recognized stock exchanges in accordance with SEBI (Substantial Acquisition of Shares and Takeover) Regulations is on the investee company. The bank should maintain the FC-TRS forms with it and should not forward the same to the Reserve Bank of India.” 44 Deleted with effect from 01.09.18 with the introduction of SMF. 45 Deleted with effect from 07.11.17 by Notification FEMA 20(R)/2017-RB dated-07.11.17 notified vide G.S.R. N0. 1374(E) dated 07.11.17. Prior to deletion it read as “by way of sale” 46 Deleted with effect from 07.11.17 by Notification FEMA 20(R)/2017-RB dated-07.11.17 notified vide G.S.R. N0. 1374(E) dated 07.11.17. Prior to deletion it read as “by way of sale” 546) Form FCTRS is required to be filed by the Indian company buying back shares in a scheme of merger/ de-merger/ amalgamation of Indian companies approved by NCLT/ competent authority. 7) The form FCTRS has to be filed with the AD bank within sixty days of transfer of equity instruments or receipt/ remittance of funds whichever is earlier. c) Know Your Customer (KYC): The sale consideration in respect of equity instruments purchased by a person resident outside India, remitted into India through normal banking channels, is subject to a KYC check 47by the remittance receiving AD bank at the time of receipt of funds. In case, the remittance receiving AD bank is different from the AD bank handling the transfer transaction, the KYC check shall be carried out by the remittance receiving AD bank and the KYC report be submitted by the transferor/transferee to the AD bank carrying out the transaction along with the Form FC-TRS. d) 48In case the foreign remitter and the beneficial owner are different, the conditions (a) to (c) laid down at Para A (1)(b)(iv) of this part shall apply mutatis-mutandis. e) 49 50Omitted 3) 51Omitted 47 Deleted with effect from 01.09.18 with the introduction of SMF. 48 Inserted as a Clarification. 49 Deleted the following with effect from 07.11.17 “The AD bank branch shall submit two copies of the Form FC-TRS received from their constituents/ customers together with the statement of inflows/ outflows on account of remittances received/ made in connection with transfer of shares, by way of sale, to its IBD/ FED/ or the nodal office designated for the purpose by the bank in the enclosed proforma (which is to be prepared in MS-Excel format).” 50 Deleted with effect from 01.09.18 with the introduction of SMF. Prior to deletion it read as, “The IBD/ FED or the nodal office of the AD bank will consolidate reporting in respect of all the transactions reported by their branches into an inflow - outflow statement (Annex V) This statement shall be forwarded on a monthly basis to Foreign Exchange Department, Reserve Bank of India, Foreign Investment Division, Central Office, Mumbai in soft copy (in MS- Excel) by e-mail to fdidata@rbi.org.in”. 51 Deleted with effect from 01.09.18 with the introduction of SMF. Prior to deletion it read as, “Reporting on e-Biz Portal of the Government of India: With a view to promoting the ease of reporting of transactions under foreign direct investment (FDI), the filing of the ARF, Form FC-GPR and Form FCTRS has been enabled under the e-Biz platform of the Government of India. The design of the reporting platform enables the customer to login into the e-Biz portal, download the reporting forms, complete and then upload the same onto the portal using their digitally signed certificates. The AD banks will be required to download the completed forms, verify the contents from the available documents, if necessary by calling for additional information from the customer and then upload the same for RBI to process and allot the Unique Identification Number (UIN). Physical filing of FC-GPR, ARF and FCTRS forms is discontinued from February 8, 2016 and online filing through government’s e-Biz portal has been made mandatory.” 554) Reporting of conversion of ECB into equity Details of issue of shares against conversion of ECB have to be reported to the Regional Office concerned of the Reserve Bank, as indicated below: (i) In case of full conversion of ECB into equity, the company shall report the conversion in Form FC-GPR52 as well as in Form ECB-2 (Part V: Annex III) to the Department of Statistics and Information Management (DSIM), Reserve Bank of India, Bandra Kurla Complex, Mumbai – 400 051, 53Contact numbers 022-26572513 and 022- 26573612, within seven working days from the close of month to which it relates. The words "ECB wholly converted to equity" shall be clearly indicated on top of the Form ECB-2. Once reported, filing of Form ECB-2 in the subsequent months is not necessary. (ii) In case of partial conversion of ECB, the company is required to report the converted portion in Form FC-GPR54 as well as in Form ECB-2 clearly differentiating the converted portion from the non-converted portion. The words "ECB partially converted to equity" shall be indicated on top of the Form ECB-2. In the subsequent months, the outstanding balance of ECB shall be reported in Form ECB-2 to DSIM. 5) Reporting of ESOPs and sweat equity shares55 56An Indian company issuing 57employees’ stock option (ESOP) to persons resident outside India who are its employees/ directors or employees/ directors of its holding company/ joint venture/ wholly owned overseas subsidiary/ subsidiaries shall file Form ESOP58 within 30 days from the date of issue of ESOPs. 52 Deleted with effect from 01.09.18 with the introduction of FIRMS application. Prior to deletion it read as, “to the Regional Office concerned of the Reserve Bank”. 53 Contact numbers inserted 54 Deleted with effect from 01.09.18 with the introduction of FIRMS application. Prior to deletion it read as, “to the Regional Office concerned of the Reserve Bank”. 55 Deleted with effect from 23.10.2018 with the introduction of SMF. 56 Modified with effect from 07.11.17 vide Notification FEMA 20(R)/2017-RB dated-07.11.17 notified vide G.S.R. N0.1374(E) 57 Inserted with effect from 01.09.18 with the introduction of SMF. Prior to insertion it read as, “sweat equity shares/employees’ stock option/ shares issued against exercise of stock option.” 58 Inserted with effect from 23.10.2018 with the introduction of SMF. Subsequent to insertion, it read as, “to the Regional Office concerned of the Reserve Bank under whose jurisdiction the registered office of the company operates, within 30 days from the date of issuing sweat equity shares/ employees’ stock option/ shares against exercise of option, as the case may be. All FIRCs and KYC shall be filed as necessary documents along with form ESOP.” 566) Reporting of ADR/GDR Issues – Form DRR59 The domestic custodian shall report the issue/ transfer of sponsored/ unsponsored depository receipts as per DR Scheme 2014 in Form DRR within 30 days of close of the issue/ program. 7) Reporting requirements of Limited Liability Partnerships a) Form FDI- LLP (I): A Limited Liability Partnerships (LLPs) receiving amount of consideration for capital contribution and acquisition of profit shares is required to submit a report in Form Foreign Direct Investment-LLP (I)60 within 30 days from the date of receipt of the amount of consideration. The form shall be accompanied by: (i) copy/ies of the FIRC/s evidencing the receipt of the remittance (ii) a KYC report in respect of the foreign investor in the format specified in. 61 Omitted b) Form FDI- LLP (II): The LLPs shall report disinvestment/ transfer of capital contribution or profit share between a resident and a non-resident (or vice versa) within 60 days from the date of receipt of funds in Form Foreign Direct Investment-LLP(II). 62The onus of reporting shall be on the resident transferor / transferee. 638) Reporting of issue or transfer of Convertible Notes – Form CN a) 64A start-up company issuing Convertible Notes (CNs) to a person resident outside India shall file Form CN within 30 days of issue. 59 Deleted with effect from 23.10.2018 with the introduction of SMF 60 Deleted with effect from 01.09.18 with the introduction of SMF. Prior to deletion it read as, “through its AD bank, to the Regional Office of the Reserve Bank under whose jurisdiction the Registered Office of the Limited Liability Partnership making the declaration is situated,” 61 Deleted with effect from 07.11.17 by Notification FEMA 20(R)/2017-RB dated 07.11.17 notified vide G.S.R. N0. 1374(E) dated 07.11.17. Prior to deletion it read as “The report would be acknowledged by the Regional Office concerned, which would allot a Unique Identification Number (UIN) for the amount reported.” 62 Inserted with effect from October 17, 2019, vide Notification of FEMA 395. 63 Inserted with effect from January 10, 2017 by Amendment Notification No. FEMA 377/2016-RB dated January 10, 2017 notified vide G.S.R No. 16(E) dated January 10, 2017 64 Inserted with effect from 01.09.18 with the introduction of SMF. Prior to insertion it read as, “A startup company issuing Convertible Notes (CNs) to a person resident outside India shall furnish, through the AD bank, to the Regional Office concerned of the Reserve Bank under whose jurisdiction the Registered office of the startup company operates, a report in Form CN within 30 days of the issue of the CN.” 57b) 65Omitted and taken to FCGPR. c) Transfer of Convertible Notes of a start-up company by way of sale between a person resident in India and a person resident outside India shall be reported by the transferor/transferee, resident in India, 66in Form CN within 30 days of such transfer. d) The AD bank shall ensure due diligence with regards to KYC of the foreign investor/ buyer. 9) Reporting of foreign portfolio investment67 9.1 Investment 68other than by NRIs/ OCIs a) Reporting Form LEC(FII): The AD banks have to ensure that the FPIs registered with SEBI who are 69investing under Schedule II to NDI Rules, 2019 and all investment (other than that made by NRIs/ OCIs) which is considered as Foreign Portfolio Investment within the meaning of Rule 2(t) of NDI Rules, 2019 is reported in Form LEC(FII) on a daily basis. 70 It would be the bank’s responsibility to ensure that the data submitted to Reserve Bank is reconciled by periodically taking a FPI holding report for their bank. b) The Indian company which has issued equity instruments to FPIs which is considered as FDI within the meaning of Rule 2(r) of NDI Rules, 2019 shall be reported in Form-FCGPR.71 65 Deleted with effect from 01.09.18 with the introduction of SMF. Prior to deletion it read as, “Issue of shares against the convertible notes so issued shall be reported in form FCGPR (Annex III).” 66 Deleted with effect from 01.09.18 with the introduction of SMF. Prior to deletion it read as, “through the AD bank to the Regional Office concerned of the Reserve Bank under whose jurisdiction the Registered office of the start-up company operates,” 67 Inserted with effect from 01.09.18 with the introduction of SMF. Prior to insertion it read as, “foreign investment on the stock exchange” 68 Inserted with effect from 01.09.18 with the introduction of SMF. Prior to insertion it read as, “by FPIs on stock exchanges“ 69 Inserted with effect from 07.11.17 by Notification FEMA 20(R)/2017-RB dated 07.11.17 notified vide G.S.R. N0. 1374(E) dated 07.11.17. Prior to insertion it read as, “purchasing various securities (except derivative and IDRs) shall report all such transactions details (except derivative and IDRs) in the Form LEC (FII) to Foreign Exchange Department, Reserve Bank of India, Central Office.” 70 Deleted with effect from June 30, 2017. Prior to deletion it read as “by uploading the same to the ORFS web site (https://secweb.rbi.org.in/ORFSMainWeb/Login.jsp).” 71 Deleted with effect from 01.09.18 with the introduction of SMF. Prior to deletion it read as, “under the FDI Scheme (for which the payment has been received directly into company’s account) and the Portfolio Investment Scheme (for which the payment has been received from FPIs' account maintained with an AD bank in India) shall report these figures separately under item no. 5 of Form FC-GPR (Annex III) (Post-issue pattern of shareholding) so that the details could be suitably reconciled for statistical / monitoring purposes.” 589.2 Investment by NRIs72/ OCI The designated link office of the AD bank shall furnish to the Reserve Bank, a report in LEC(NRI) on a daily basis, 73for their entire bank, investments made by NRIs/ OCIs under Schedule III to NDI Rules, 2019 which is considered as Foreign Portfolio Investment within the meaning of Rule 2(t) of NDI, 2019 Rules.74It would be the bank’s responsibility to ensure that the data submitted to Reserve Bank is reconciled by periodically taking a NRI holding report for their bank. 75 Omitted 7610) Downstream Investment: 77Form DI: An Indian entity or an investment vehicle making downstream investment in another Indian entity which is considered as indirect foreign investment shall file Form DI with the Reserve Bank within 30 days from the date of allotment of equity instruments. 11) Investment by Foreign Venture Capital Investor (FVCI) Investment in equity instruments by FVCIs in terms of Schedule VII to NDI Rules, 2019 is required to be reported in 78Form FC-GPR and transfer of capital instruments between an FVCI and a person resident in India in terms of the Schedule, ibid, is required to be filed in Form FC-TRS. Since pricing guidelines are not applicable for Schedule VII investments, valuation certificate need not be insisted upon. 72 Inserted with effect from 01.09.18 with the introduction of SMF. Prior to insertion it read as, “on stock exchanges” 73 Inserted with effect from 07.11.17 by Notification FEMA 20(R)/2017-RB dated 07.11.17 notified vide G.S.R. N0. 1374(E) dated 07.11.17. Prior to insertion it read as, “on PIS transactions undertaken on behalf of NRIs for their entire bank.” 74 Deleted with effect from June 30, 2017. Prior to deletion it read as, “This report can be uploaded directly on the ORFS web site (https://secweb.rbi.org.in/ORFSMainWeb/Login.jsp).” 75 Deleted as it has been included in FCGPR and FCTRS. Prior to deletion it read as, “11) Reporting of foreign investment by way of issue/ transfer of ‘participating interest/ right’ in oil fields: Foreign investment by way of issue/ transfer of ‘participating interest/ right’ in oil fields by Indian companies to a non-resident would be treated as an FDI transaction. Accordingly, transfer of ‘participating interest/ rights’ will be reported as ‘other’ category under Para 7 of Form FC- TRS (Annex IV) and issuance of ‘participating interest/ rights’ will be reported as ‘other’ category of instruments under Para 4 of Form FC-GPR (Annex III).” 76 Inserted with effect from 01.09.18 by notification FEMA 20(R) (3)/ 2018-RB notified vide G.S.R.No. 823 (E) dated Aug 30, 2018. Prior to insertion, it read as, “An Indian entity making downstream investment in another Indian company or an LLP which is considered as indirect foreign investment for the investee entity in terms of FEMA 20(R), shall notify the DIPP within 30 days of such investment”. 77 Inserted with effect from 23.10.2018 with the introduction of SMF. 78 Inserted with effect from 01.09.18 by notification FEMA 20(R) (3)/ 2018-RB notified vide G.S.R.No. 823 (E) dated Aug 30, 2018. Prior to Insertion it read as,“Forms ARF and” 597912) Investment by persons resident outside India in units of an Investment Vehicle An Investment vehicle which has issued its units to a person resident outside India in terms of Schedule VIII of NDI Rules, 2019 shall file Form InVI within 30 days from the date of issue of units. 80 79 Inserted with effect from February 05, 2019 with the introduction of form InVI on SMF- FIRMS 80 Deleted vide A.P.(DIR Series) Circular No. 16 dated September 30, 2022 which introduced a uniform LSF matrix 6081Omitted 81 Deleted Annex I to Annex X with the introduction of SMF. 61Part V: External Commercial Borrowing (ECB) Indian companies are allowed to access funds from abroad in the following methods: (i) External Commercial Borrowings (ECB) (ii) Foreign Currency Convertible Bonds (FCCBs) (iii) Preference shares (iv) Foreign Currency Exchangeable Bonds (FCEBs) ECB can be accessed under two routes, viz., (i) Automatic Route outlined in paragraph and (ii) Approval Route. The reporting requirements are given below: 1) Application for raising ECB under the Approval Route and for allotment of Loan Registration Number (LRN) for ECB - Form ECB (Annex I) 822) Reporting of actual transactions of ECB - ECB 2 Return (Annex II) 3) Form for reporting of details of Trade Credit – Form TC (Annex III) 4) Statement on Guarantee/ Letter of Undertaking/ Letter of Comfort issued by AD banks in respect of Trade Credit (Annex IV) 82 Deleted vide A.P. (DIR Series) Circular No. 17 dated January 16, 2019. Before deletion it read as “2) Application for allotment of Loan Registration Number (LRN) for ECB – Form 83 (Annex II)” 62Part V: Annex I Form ECB83 (Application and Reporting of loan agreement details under Foreign Exchange Management Act, 1999) 1. All dates should be in the format YYYY/MM/DD (e.g., 2012/01/21 for January 21, 2012). 2. No item should be left blank. In case, any item is not applicable, write ‘N.A.’ against it. 3. If space is not sufficient for giving full details against any item, separate sheet(s) may be attached to the Form and serially numbered as Annex. Each such Annex should be certified by both the borrower and AD. 4. The borrower should give a brief description of his business activity (whether in manufacturing/ trade/ provide services etc.) for the AD’s use. 5. Before forwarding the Form to the Reserve Bank of India, AD must ensure that the form is complete in all respects and scrutinise all the related original documents at its end. Incomplete Forms are liable to be rejected/returned by RBI to AD. 6. Following codes are for use in filling Part C of the Form: Box 1: Guarantee Status Code Box II: Borrowing Purpose Code Sr. Code Description Sr. Code Description No. No. 1 GG Govt. of India guarantee 1 IC Import of capital goods 2 CG Public Sector guarantee 2 RL Local sourcing of capital goods (Rupee expenditure) 3 PB Public Sector Bank 3 SL On-lending or sub-lending guarantee 4 FI Financial Institution 4 RF Refinancing of earlier ECB guarantee 5 MB Multilateral/ Bilateral 5 NP New Project Institution guarantee 6 PG Private Bank guarantee 6 ME Modernisation/Expansion of existing units 7 PS Private Sector 7 OI Overseas investment in JV/ WOS guarantee 8 MS Mortgage of assets/ 8 MF Micro Finance activity security 9 OG Other guarantee 9 OT Others (specify) 10 NN Not guaranteed 10 RR Refinancing of rupee loans 11 RB Redemption of FCCBs 12 IF Infrastructure development 13 RC Working capital/ general corporate purpose 7. To be submitted in duplicate by the borrower to designated Authorised Dealer (AD) for all categories and any amount of external commercial borrowing (ECB). After examining conformity with the extant ECB guidelines, the AD may provide requisite details in the Summary Sheet of the Form and forward one copy (within 7 days from the date of signing loan agreement between borrower and lender) for allotment of Loan Registration Number (LRN) to: 83 Amended vide AP (DIR Series) Circular No.17 dated January 16, 2019. The Form ECB and Form 83 have been replaced by only a single Form ECB. 63The Director External Commercial Borrowings Division Department of Statistics and Information Management (DSIM) Reserve Bank of India C-9 Bandra-Kurla Complex Mumbai – 400 051 Agreement Details (To be filled by borrowers of External Commercial Borrowings) ECB application Original Revised Form FCY ECB INR ECB In case of Revised Loan Registration Number allotted ECB under Approval Automatic Route Route Whether requires clearance from any statutory authority? If yes, furnish the name of authority, clearance no. and date. Comments/ recommendation of AD bank: Part A: Borrower details Name and address of the Borrower (in Borrower Category (Tick one) BLOCK letters) Public Private Sector Sector Detailed Category (Tick one) Corporate - Manufacturing Registration Number given by the Corporate – Infrastructure Registrar of Companies: a) Transport b) Energy PAN Number of Company: c) Water and Sanitation Business Activity: d) Communication e) Social and Commercial Infrastructure f) Exploration, Mining and Refinery g) Others Sub-Sector:___________________ Corporate –Service Sector - Contact Official’s Name: Others Designation: a) Units in SEZ; Phone No.: b) SIDBI; Fax No.: c) EXIM Bank; E-mail ID: d) Micro-finance entities (No item should be left blank) e) Others: _______________ Bank Financial Institution (other than NBFC) NBFC- IFC/AFC Reg. No. NBFC- MFI Reg. No. NBFC- Others Reg. No. Non-Government Organization (NGO) Micro Finance Institution (MFI) Others (Specify) Part B: Lender details 64Name and address of the lender/ lessor Lender Category (Tick one) /foreign supplier (in BLOCK letters) Multilateral Financial Institution Foreign Government (Bilateral Agency) Export Credit Agency Indian Commercial Bank branch abroad Other Commercial Bank Supplier of Equipment Country: Leasing Company E-mail ID: Foreign Collaborator / Foreign Equity Holder (No item should be left blank) International Capital Market Regional Financial Institution Government Owned Development Financial Institution Private placement (RDBs) Public Offer (RDBs) Others (Specify) Details of foreign equity holding of the (b) Amount of paid-up capital lender in the borrower company: (a) Share in paid-up equity of the borrower (%) ECB-Liability: equity ratio in case of borrowings above USD 5 million from foreign equity holder: Part C: Loan Details Loan Agreement Date / / (YYYY/MM/DD) Effective Date of the Loan / / Last Date of Disbursement / / Maturity Date (Last payment / / date) Grace Period (if in agreement) Years Months Currency Name Currency Code (SWIFT) 1. 2. 3. Amount (in Foreign Currency) 1. 2. 3. Equivalent Amount (in US Dollars) (as on date of this form) Proposed Bifurcation of the Foreign Currency Expenditure Rupee Expenditure amount (in loan currency) Hedging details (Tick Currency Swap Interest Rate Swap Others Unhedged one) Hedging percentage Financial Hedge Natural Hedge Total (proposed) Hedge 65In case options are provided in the loan agreement (tick in the appropriate box) Call Option __ per cent of Can be executed after date / / Debt Put Option __ per cent of Can be executed after date / / Debt Name and address of the Guarantor (in Block letters) Contact Official’s Name: Designation : Phone No.: Fax No.: E-mail id: Guarantee Status Code: Nature and details of security, if any End-use (% share if more than one end-use): (i) Borrowing Purpose Code ____________ Amount _____________ Percentage ___________ (ii) Borrowing Purpose Code ____________ Amount _____________ Percentage ___________ (iii) Borrowing Purpose Code ____________ Amount _____________ Percentage ___________ Project Details (Name, Location and Cost): If import, specify the Country of import (if more than one country, attach details as Annex): Industry Code (as per NIC-2008) Type of ECB (Tick in appropriate box) 1.Buyers’ Credit 2.Commercial Loan / Syndicated Loan (attach sheet for percentage distribution among lenders) 3.Suppliers’ Credit 4.Export Credit from Bilateral Sources 5.Line of Credit 6. Securitized Instruments (Bonds, CP, FRN, etc.) 7.Financial Lease 8.FCCB, FCEB, Non-Convertible Preference Shares, Optionally Convertible Preference Shares, Partially Convertible Preference Shares 9.Refinancing of old ECBs LRN of the old ECB: Approval No. Date of Approval: Amount refinanced: Reason: 10.Others (Specify) Interest Payment Schedule First Payment / / No. of payments/ Date year Fixed Rate Floating Rate Base Margin Cap Rate Floor with Rate currency Drawdown Schedule Tranche Date* Currency Amount If more than one instalment No. (YYYY-MM-DD) Total No. of drawals No. of drawals in a calendar year 66* 1. In case of import of goods or services, date of import is to be furnished against date of drawdown. 2. In case of financial lease, date of acquisition (import) of the goods is to be mentioned as date of drawdown. 3. In case securitised instruments, date of issue has to be shown as date of drawdown. 4. In case of more than one equal drawdown transactions are shown in a row, the first date of transaction should be mentioned. Principal Repayment Schedule Date Currency Amount If more than one instalment (YYYY-MMDD) Total No. of No. of payments in a calendar year payments Part D: Other Charges Nature of charge E xpected Date Currency Amount In case of multiple equal payments of No. of payments in a Total no. of Payment year payments Upfront fee Management fee Commitment fees Guarantee fees ECA charges Others Total Penal Interest for late Fixed % or Base: Margin: payments Commitment Charges % per annum of: % of Undrawn Amount: Part E: Details of ECB already availed (not applicable for the first-time borrower) Year Loan Reg. No. Currency Amount of Loan (LRN) Principal Disbursed so far Net outstanding (as per (Principal) agreement) We hereby certify that the particulars given above are true and correct to the best of our knowledge and belief and no material information has been withheld and/or misrepresented. Furthermore, the ECB is in compliance with the extant ECB guidelines and the ECB to be raised will be utilised for permitted purposes. Place: __________________ (Signature of the Authorised Official of the Company with stamp) Date: ___________________ Name:______________________ Designation:______________ Phone No.___________________ Fax: ____________________ E-mail ______________________ 67Summary Sheet (SS) for Form ECB We have scrutinized the related documents and confirm the following: 1 End-use (i) Permissible Approved by Foreign (% share if more than one (ii) under Automatic Exchange Department, end-use) (iii) Route RBI under Approval Route 2 Average Maturity Years Months 3 Floating Rate Loan Fixed Rate Cost Factors (%) Margin (spread) Loan Base over base a) Interest Rate b) All-in-cost 4 In case of loan from ‘Foreign Equity Holder’, it is confirmed that ECB liability: Equity ratio (7:1) criteria is satisfied. Further, in case of working capital/ general corporate purpose/ repayment of rupee loans end-use, it is confirmed that equity holding of lender is at least 25 per cent (direct)/ 51 per cent (indirect) of the paid-up equity or the lender is a group company with common overseas parent. 5 Borrower has given written undertaking to AD to the effect that it has Yes / been submitting ECB-2 Returns regularly to RBI in respect of past Not Applicable ECB/FCCB loans) 6 Security provided, if any 7 Other important facts relevant for the allotment of LRN Place: __________________ (Signature of Company Secretary/Chartered Accountant with stamp) Date: ___________________ Name:_______________________________ Registration No. _______________________ We certify that the borrower is our customer and the particulars given in this Form are true and correct to the best of our knowledge and belief. We have scrutinized the application and the original letter of offer from the lender/supplier and documents relating to proposed borrowing and found the same to be in order. This application complies with the extant ECB guidelines and we recommend it for allotment of Loan Registration Number (LRN) by RBI. Place: __________________ (Signature of the Authorised Official with stamp) Date: ___________________ Name: ________________________________ Designation:______________ Name of the bank/branch AD Code (Part I and Part II):_______________ Tel No.____________ Fax No.____________ e-mail:________________________________ 68For RBI (DSIM) Use only RBI Team Receivedd on Action Taken Loan Classification on LRN (if allotted) 69Part V: Annex II Form ECB 284 Reporting of actual transactions of External Commercial Borrowings (ECB) under Foreign Exchange Management Act, 1999 (for all categories and any amount of loan) Return for the Month ended of . 1. This return should be filled in for all categories of ECB. It should be submitted within 7 working days from the close of the month through the designated Authorised Dealer to the Director, Department of Statistics and Information Management (DSIM), External Commercial Borrowings Division, Reserve Bank of India, C-9, Bandra-Kurla Complex, Bandra (East), Mumbai-400 051. If there is no transaction during a particular period, a Nil Return should be submitted. 2. Please do not leave any column blank. Furnish complete particulars against each item. In case an item is not applicable, write “N.A.” against it. 3. All dates should be in format YYYY/MM/DD (e.g., 2012/01/21 for January 21, 2012). 4. Borrowers obtaining sub-loans through DFIs/Banks/NBFCs etc. should not complete this form as the concerned financial institution would directly submit Form ECB-2. 5. The Company Secretary / Chartered Accountant must scrutinise related original documents and ensure that the return is complete and in order as per ECB guidelines issued by Government/RBI, before forwarding it to RBI. 6. Loan Registration Number should be specified for all the loans approved after February 01, 2004. For earlier loans, Loan Identification Number (LIN) / Registration Number allotted by RBI should be specified. 7. If space is not sufficient for giving full information against any item, a separate sheet may be attached to the return and serially numbered as Annex. 8. Following purpose codes for use in Part C (Utilisation). Code Description Code Description IC Import of capital goods MF Micro Finance Activity OI Overseas Investment in JV/WOS OT Others (Pl. specify) Local sourcing of capital goods (Rupee RL RR Refinancing of rupee loans expenditure) RC Working Capital (Rupee expenditure) RB Redemption of FCCBs SL On-lending or sub-lending IF Infrastructure development RF Repayment of earlier ECB NP New project Modernisation /Expansion of existing ME units 9. Following codes for use in Part D (Debt Servicing) for source of remittance: Code Description Code Description A Remittance from India D Conversion to equity capital B Account held abroad E Lender waiver C Export proceeds held F Others (specify) abroad 84 Amended vide AP (DIR Series) Circular No. 17 dated January 16, 2019. 70Part A: Loan Identification Particulars Loan Registration Number (LRN) Loan Amount Borrower Particulars Currency Amoun t Name and address of the Borrower (Block Letters) As per Agreement Revised (please indicate if Contact Person's Name: period of disbursement Designation: elapsed/ Cancelled/ not to be Phone No. : drawn in future) Fax no. : E-mail ID : Part B: Disbursement B.1: Draw-down (Disbursement) during the month (in loan currency): Particulars Date Currency Amount Name of Account No. (YYYY/MM/DD) Bank/branch A. Amount Parked Abroad B. Amount Remitted to India Not Required Notes: 1. In the case of import of goods or services, date of import may be furnished against date of drawdown. 2. In the case of financial lease date of acquisition of the goods is to be mentioned as date of drawdown. 3. In the case of securitised instruments, date of issue may be shown as date of drawdown 4. In the case of multi-currency loan a separate block(s) may be attached to the return B.2: Balance amount of loan to be drawn in future: Expected Date of Currency Amount If more than one instalment drawdown Total number of No. of drawals in a drawals calendar year 71Part C : Utilisation C.1: Details of utilisation of drawdowns (only Principal amount) during the month: Particulars Date Purpose Currency Amount Country Name of Account code Bank No. From Amount Held Abroad From Amount Remitted to India Not Required C.2: Outstanding Balance amount (principal only) as at month-end: Particulars Deposits/ Cumulative Currency Amount Name of bank Account Others period in and branch No. months Parked Abroad Parked in India Part D : Debt Servicing D.1: Principal Repayment, Interest payment etc. during the month (in loan currency): Tranche Purpose Date of Currency Amount Code for Whether No. Remittance Source of Prepayment remittance of Principal (Y/N) # Principal Repayment @ Interest @ rate Others (Specify) # In case of prepayment please provide details of Automatic / Approval Route No., Date, Amount as Annex. @ In case of conversion of FCCB/ECB into equity, Buyback/Redemption of outstanding FCCB or write- off of ECB principal amount, the transactions still to be shown against Principal Repayment with appropriate remarks. D.2: Revised Principal Repayment Schedule (if revised / entered into Interest rate swap): If more than one instalment Annuity Date (YYYY/MM/DD) Currency Amount in Loan Total No. of Rate (First repayment Currency in (if annuity Number of payments in a date) each transaction instalments calendar year payment) (1, 2, 3, 4, 6, 12) 72Part E : Others E.1 Hedging details: Financial hedge(s) Natural hedge Annualised Outstanding percentage Principal % of % of cost of ECB Currency Notional outstanding Notional outstanding financial amount* value ECB value ECB hedge(s) for amount amount ECB *as on the last date of the reporting month E.2 Foreign exchange earnings and expenditure, if any, for the last three financial years (only corresponding to same currency of ECB): Foreign Annual EBID** Foreign Currency Financial Year Currency Currency expenditure earnings **Earnings before Interest and Depreciation (EBID), as defined table above = Profit After Tax + Depreciation + Interest on debt + Lease Rentals, if any. Part F: Outstanding Principal Amount Outstanding loan Amount (in Loan Currency): (i.e., total drawdown less total repayments at month-end) Currency Amount: We hereby certify that the particulars given above are true and correct to the best of our knowledge and belief. No material information has been withheld and / or misrepresented. Place:___________ ___________________________________ Signature of Authorised Official of borrowing company (with stamp) Date:____________ Name: ______________________________ Designation: _________________________ Telephone No.: _______________________ 73Summary Sheet (SS 2) for Form ECB 2 Loan Registration Number (LRN) : _________________________ Currency Drawn Drawn Principal Net Interest Other Amount amount in repayment outstanding Payments charges before current in current made paid current month month month Certificate from Company Secretary / Chartered Accountant We hereby certify that the ECB availed vide LRN _____________ in terms of approval granted by Government or RBI or under approval route / automatic route is duly accounted in the books of accounts. Further, ECB proceeds have been utilised by the borrower for the purpose of ______________________________________________during month ended ____________. We have verified all the related documents and records connected with the utilisation of ECB proceeds and found these to be in order and in accordance with the terms and conditions of the loan agreement and with the approval granted by GoI (MoF) or RBI or under approval route / automatic route and is in conformity with the applicable ECB Guidelines. Authorised Signatory Name & Address Place: Registration No. Date: [Stamp] _________________________________________________________________ Certificate by an Authorised Dealer We hereby certify that the information furnished with regard to debt servicing, outstanding and repayment schedule for LRN ____________ for month ended ____________ is true and correct as per our record. The drawal, utilisation and repayment of the ECB have been scrutinised and it is certified that such drawal, utilisation and repayments of ECB are in compliance with ECB guidelines ___________________________________ Place:___________________ Signature of Authorised Dealer (with stamp) Date:____________________ Name:______________________________ Designation: _________________________ Telephone No.:_______________________ Name & Address of Authorised Dealer:___________________ E-mail ID:_________________ 74Part V: Annex III (Annex to A.P. (DIR Series) Circular No. 87 dated April 17, 2004) Form Trade Credit (TC) F orm – TC Annex to A.P. (DIR Series) Circular No. 87 dated April 17, 2004 P art I : Approvals of Trade Credit granted by all branches during the (Month / Year)………… N ame of the AD : C ontact Person: A ddress : T el : F ax : Sr. Date of Loan Category Name of Country of Currency Amount Equiv. Amt.in Rate of Other No Approv Identification of Lender* Lender* USD Interest charges in al No. Borrower USD 1 2 3 4 5 6 7 8 9 10 11 Total Form – TC Annex to A.P. (DIR Series) Circular No. 87 dated April 17, 2004 Part I : Approvals of Trade Credit granted by all branches during the (Month / Year)………… e-mail: Period of credit Type of Credit** Item of Import / proposed Import All-in-cost No. of Days/Mon./Yr Unit of time SC / BC STC / LTC Description Category*** period 12 13 14 15 16 17 18 I. Supplier's Credit (SC) II. Buyer's Credit (BC) 75III. Short-term Trade Credit (STC) (maturity period up to one year) IV. Long-term Trade Credit (LTC) (maturity period more than one year & less than three years) V. Total Trade Credit (TC) (I+II) *: or Supplier **: Please type respective code such as SC or BC; STC or LTC. ***: Petroleum Oil Lubricants (POL), Capital Goods (CG), Others (OT) Note 1: The format of the loan identification number is: TC/(Name of the Bank/branch)/(Identification No.) Note 2: Information in column nos. 8 to 13 should be numeric only. No alphabets should be entered in those columns. Note 3: Date format in col. No 2 is YYYY/MM/DD. For example, December 31, 2003 should be entered as 2003/12/31 Part II : Disbursement, Utilization and Debt servicing of Trade Credit during (month) / (year) Sr. Loan Amount Disburseme Utilization Princip Interest Other Total Outstanding Shipment Final No. Identif approved nt (USD) al charges (6+7+ (4-6) repayment icatio (USD) (USD) 8) n No. 1 2 3 4 5 6 7 8 9 10 11 12 Note 1: Information in column nos.1, 3 to 10 should be numeric only. No alphabets should be entered in those columns. Note 2: Date format in col. No 11, 12 is YYYY/MM/DD. For example, December 31, 2003 should be entered as 2003/12/31 Certificate by the Authorized Dealer 1. All trade credits for imports approved by all our branches during the month------------------ have been included in this statement. 2. Related import documents (including EC copy of Bill of Entry) towards utilization of such trade credits have been verified and found in order. 3. The drawal, utilization and repayment of all trade credits approved by our branches have been scrutinized and it is certified that such drawal, utilization and repayments of trade credits 76Part V: Annex IV (Annex to A.P.DIR Series circular No.24 dated November 01, 2004) Bank Guarantees/ 85/ invoked by ADs As on quarter ended ………………. Name of the AD: Address: Contact Person: Tel: Fax: e-mail: (USD million) On behalf of Residents Bank Guarantees 86 Issued Buyer’s Credit Supplier’s Credit Trade Credits (less than 3 years) (a) Up to one year (b) Above one year and less than three years ** ** (Limited to Import of Capital Goods) Place:----------------------- Signature of the Authorised Signatory Date: ----------------------- [Stamp] 85 Deleted vide A. P. (DIR Series) Circular No. 20 dated March 13, 2018 86 Deleted vide A. P. (DIR Series) Circular No. 20 dated March 13, 2018 77Part VI: Non-resident Foreign Accounts 1) Monthly statement on remittances made from NRO Accounts (Annex I): With a view to having access to more real time data, information on the details of remittances made by NRIs/ PIOs/ Foreign nationals out of the NRO accounts is collected on a monthly basis. AD - Category I banks are required to furnish the statement in the requisite format to General Manager-in-Charge, Foreign Exchange Department, Foreign Investments Division (NRFAD), Reserve Bank of India, Central Office Cell, Parliament Street, New Delhi 110 001 within 7 days of the end of the reporting month. 2) The accounts opened by an authorised dealer or an authorised bank in respect of individual/s of Bangladesh nationality should be reported by it to its Head Office and the Head Office of such authorised dealer/ authorised bank should forward a quarterly report containing details of Name of the Individual(s), Passport Number, Issuing Country/State, Name of the FRO/ FRRO, Date of issue of Residential Permit and validity thereof, to the Ministry of Home Affairs (Foreigners Division) on Quarterly basis”. 3) Return on non-resident deposits (Annex II): Authorised Banks maintaining non-resident deposits are required to submit detailed monthly data on non-resident deposits to the Reserve Bank of India in NRD-CSR package, the format of which is at Annex II (available at https://rbidocs.rbi.org.in/rdocs/content/pdfs/19APDR_AN10813.pdf ). For monthly NRD-CSR submission on XBRL platform by nodal office of banks, the Reserve Bank has provided the following two alternatives: (a) Banks can download the RBI’s NRD-CSR template by logging to the RBI’s Online Reporting web-page (http://orfs.rbi.org.in) (Path: Homepage → XBRLbased filing → (enter user name / password) → Download Returns Package → Form NRD- CSR) and use the same to generate instance document (.xml file) after entering details. The instance document can be uploaded on RBI’s XBRL page. The Reserve Bank (DSIM, CO) will provide Username and Password to all banks for NRD-CSR for this purpose. (b) Banks can use any publicly available XBRL tool in relation with their internal database and build NRD-CSR discipline prescribed by RBI, for generation of instance document (.xml file) and upload the same on RBI’s XBRL page. In addition, banks can also generate instance document in the prescribed format from their internal system, if it provides such flexibility. 78Part VI: Annex I (Proforma annexed to 87A.P. (DIR Series) Circular No. 67/2015-16/ [(1)/5(R)] dated May 5, 2016) Statements indicating the details of remittances made by NRIs/PIOs Foreign nationals out of the NRO accounts for the month ended Name of the bank: No. of remittance on account of Amount in USD Sale Other Transfers Total Sale Other Transfers Total proceeds of assets from NRO to proceed assets from NRO to immovable NRE account s of NRE account property immova ble property 87 Inserted by A.P (DIR Series) Circular No. 67/2015-16/ [(1)/5(R)] dated May 5, 2016. Prior to insertion it read as: “A.P (DIR Series) Circular No. 106 dated February 18, 2014.” 79Part VI: Annex II Monthly data on non-resident deposits Non-Resident Deposits - Comprehensive Single Return: Format for XBRL-based reporting system 1. Format of NRD-CSR No Column Description Type Position Remarks 1. Bank Code 7 N 1 to 7 Bank Working Code for XBRL (given by RBI) followed by zeros 2. Reporting period [of 6 N 8 to 13 Month to which NRD data pertains Stock & flows] (YYYYMM format) 3. Deposit_Scheme code 4 A 14 to 17 As per Code Box 1 4. Account Type 1 A 18 F for Fixed; R for Recurring; S for Savings; C for Current A/c 5. Original Maturity 1 N 19 As per Code Box 2 6. Remaining Maturity 1 N 20 As per Code Box 2 7. Country (SWIFT code) 2 A 21 to 22 SWIFT Country code 8. A/c Currency (SWIFT 3 A 23 to 25 SWIFT Currency code code) 9. Record_Type Code 2 A 26 to 27 As per Code Box 3 10. Record - Amount 15 N 28 to 42 Amount (in currency of account) without decimal point N – Numeric; A – Alpha-numeric 2. Details of codes to be used in the NRD-CSR Code Box-1: Deposit Scheme Code Sr. Account under the Scheme Scheme Code No. 1. Foreign Currency Non-Resident (FCNR) A/c FCNR 2. Non-Resident External (NRE) Rupee Account NRER 3. Non-Resident Ordinary (NRO) Rupee Account NROR Code Box-2: Maturity Code Sr. Maturity Classification Maturity No. Code 1. Up to and inclusive of six months 1 2. Over six months but up to and inclusive of one year 2 3. Over one year but up to and inclusive of two years 3 4. Over two years but up to and inclusive of three years 4 5. Over three years 5 6. Unallocated (Savings/Current/Unclaimed Accounts) 6 The residual maturity cannot be determined for Savings/Current/Unclaimed Deposit Accounts. The residual maturity for such cases, should be “unallocated” (Code 6). 80Currency Code (SWIFT Code) USD, GBP, EUR, JPY, AUD, CAD and other freely convertible currencies are permitted for FCNR(B) Code Box-3: Record Type Code No. Record Type Description of data item on the record Code 1. Inflows Fresh inflow from abroad (total) FI 2. Amount of interest reinvested IR 3. Amount renewed / transfer from other A/c PR 4. Local inflow (for NRO Savings A/c) LI 5. Outflows Amount of principal remitted abroad (total) PA 6. Amount of interest remitted abroad (total) IA 7. Amount of principal remitted locally PL 8. Amount of interest remitted locally IL 9. Local withdrawals (gifts, tax, donations etc.) LW 10 Transfers to other A/c including renewals TR 11 Balances Opening Balance, including unclaimed OB 12 Closing Balance, including unclaimed CB 13 Unclaimed Balance UC 14 Interest Accrued as on end of Reference Month AI 15 Interest Suspense Balance (Interest Arrears) SB 3. Validations Sl. Validations Type * (Fatal No. (F)/ Non- Fatal (N)) 1 Total length of the file should not go beyond 42. F 2 Bank Code, N.R. D. Scheme code, Account Type, Country (SWIFT F code), A/c Currency (SWIFT code) and Record - type Code will be validated with their respective code box / master. 2 “Original Maturity” can’t be less than “Residual Maturity” F 4 Record type can’t have negative value. F 5 For FCNR (B) scheme any freely convertible currencies (except INR) can F be selected. 6 For NRE and NRO scheme only INR can be selected. F 7 For FCNR (B) scheme, the valid Record types are FI, IR, PR, PA, IA, HI, F PL, IL, TR and OB,CB,UC,AI,SB. 8 For NRE scheme the valid Record types are FI, IR, PR, PA, IA, PL, IL, F LW, TR and OB,CB,UC,AI,SB. 9 For NRO scheme the valid Record types are FI, IR, PR, LI, PA, IA, PL, IL, F LW, TR and OB,CB,UC,AI,SB. 10 For FCNR (B) scheme the following consistency check shall be provided N for each currency: CB = OB + INFLOWS (FI+IR+PR) - OUTFLOWS (PA+PL+TR) 8111 For NRE scheme the following consistency check shall be provided: CB N = OB + INFLOWS(FI+IR+PR) - OUTFLOWS (PA+PL+TR+LW) 12 For NRO scheme the following consistency check shall be provided: N CB=OB + INFLOWS(FI+IR+PR+LI) - OUTFLOWS (PA+PL+TR+LW) 13 For FCNR and NRE scheme, “Original Maturity” for term deposit cannot F have “Maturity Code” value ‘1’ [code box 2] *Note: For any ‘fatal error’, system shall completely reject the file and record and for ‘non-fatal’ error, the system shall accept the record/ file and process. However, in both the cases errors will be thrown by the system for correction and submission of revised data. 82Part VII: Immovable Property Form IPI (Annex I): A person resident outside India who has established in India, a branch, office or other place of business in accordance with the 88Foreign Exchange Management (Establishment in India of a Branch Office or a Liaison Office or a Project Office or any other Place of Business) Regulations, 2016, as amended from time to time, for carrying on in India any activity, excluding a liaison office, and acquires any immovable property in India, which is necessary for or incidental to carrying on such activity, is required to file with the Reserve Bank, a declaration in the form IPI as prescribed by Reserve Bank from time to time, not later than ninety days from the date of such acquisition. 88 Replaced “Foreign Exchange Management (Establishment in India of Branch or Office or any other Place of Business) Regulations, 2000” with “Foreign Exchange Management (Establishment in India of a Branch Office or a Liaison Office or any other Place of Business) Regulations, 2016. 83Part VII: Annex I Form IPI Declaration of immovable property acquired in India by a person resident outside India who has established in India a branch, office or other place of business, excluding a liaison office Instructions: 1. The declaration should be completed in duplicate and submitted directly to 89 the General Manager, Reserve Bank of India, Central Office Cell, Foreign Exchange Department, 6, Sansad Marg, New Delhi - 110 001 within 90 days from the date of acquisition of the immovable property. 2. This form is not to be submitted by a person resident outside India who is a citizen of India or 90an Overseas Citizen of India [Overseas Citizen of India (OCI)’ means a person resident outside India who is registered as an Overseas Citizen of India Cardholder under Section 7(A) of the Citizenship Act, 1955] acquiring immovable property in India under General Permission in accordance with Regulations 3 91of Notification No. FEMA 21(R)/2018-RB dated March 26, 2018. Documentation: Certified copies of letter of approval from Reserve Bank obtained under section 6(6) of FEMA, 1999 (42 of 1999). 1 Full name and address of the acquirer who has acquired the immovable property 2 (a) Description of immovable property (b) Details of its exact location stating the name of the state, town and municipal/ survey number, etc 3 (a) Purpose for which the immovable property has been acquired (b) Number and date of Reserve Bank’s permission, if any 4 Date of acquisition of the immovable property 5 (a) How the immovable property was acquired i.e. whether by way of purchase or lease (b) Name, citizenship and address of the seller/ lessor (c) Amount of purchase price and sources of funds I/ We hereby declare that- (a) the particulars given above are true and correct to the best of my/our knowledge and belief; 89 Modified with effect from July 2018. Prior to modification, read as “the Chief General Manager, Foreign Exchange Department, (Foreign Investment Division), Reserve Bank of India, Central Office, Mumbai – 400 001 90 Replaced “a Person of Indian Origin (PIO) with “an Overseas Citizen of India (OCI)” on account of issue of Notification No. FEMA 21(R)/2018 dated March 26, 2018. 91 Replaced “Notification No. FEMA 21/2000-RB dated May 3, 2000 with Notification No. FEMA 21(R)/2018 dated March 26, 2018 84(b) no portion of the said property has been leased /rented to, or is otherwise being allowed to be used by, any other party Encls: -------------------------------- (Signature of Authorised official) Stamp Place: ------- Name:------------------------------ Date:--------- Designation:---------------------- 8592Part VIII: Overseas Investment (OI): The overseas investment framework has been rationalised by issuance of the Foreign Exchange Management (Overseas Investment) Rules, 2022 (hereinafter referred to as ‘OI Rules’) notified vide Notification No. G.S.R. 646(E) dated August 22, 2022 and Foreign Exchange Management (Overseas Investment) Regulations, 2022 (hereinafter referred to as ‘OI Regulations’) notified vide Notification No. FEMA 400/2022-RB dated August 22, 2022 in supersession of Notification No. FEMA 120/RB-2004 dated July 07, 2004 (Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004). Consequently, Foreign Exchange Management (Overseas Investment) Directions, 2022 (hereinafter referred to as ‘OI Directions’) have been issued vide A.P. (DIR Series) Circular No.12 dated August 22, 2022. 2. Accordingly, the revised reporting instructions are as under. In terms of Regulation 10 of the OI Regulations, a) A person resident in India, (i) who has made Overseas Direct Investment (ODI) or is making any financial commitment or undertaking restructuring or undertaking disinvestment in a foreign entity, shall report it in Form FC (ii) who has made ODI shall submit an Annual Performance Report (APR) b) A person resident in India other than a resident individual, making any Overseas Portfolio Investment (OPI) or transferring such investment by way of sale, shall report the same in Form OPI c) An Indian Entity which has made ODI, shall submit an Annual Return on Foreign Liabilities and Assets (FLA). 3. Form FC (Annex I): This Form captures information relating to financial commitment including ODI, restructuring and disinvestment by Indian entities (as defined under the OI Rules) and resident individuals, as applicable. The Form has seven sections viz. Section A to G. Brief details of each section are given below. Section A Details of the Indian entity/ resident individuals/ Trust/ Society Section B Details of the foreign entity/ step-down subsidiaries 92 Part VIII has been amended with effect from August 22, 2022 to align the directions with Foreign Exchange Management (Overseas Investment) Regulations, 2022 and Foreign Exchange Management (Overseas Investment) Directions, 2022 86Section C Details of transaction/ remittance/ financial commitment of the person resident in India Section D Declaration furnished by the Indian entity/ resident individual, undertaking financial commitment Section E Certificate by the Statutory Auditors of the Indian entity (IE)/ group company Section F Details to be reported at the time of restructuring of the balance sheet of the foreign entity involving diminution in the total value of the outstanding dues towards the person resident in India on account of investment in equity and debt Section G Details to be reported at the time of disinvestment in the foreign entity by way of sale or transfer of equity capital/ buyback of equity capital/ closure/ liquidation/ winding up/ merger/ amalgamation 4. Form APR (Annex II): This form captures the change in the share-holding pattern, financial position of the foreign entity, repatriation from the foreign entity and details of step-down subsidiaries. 5. Form OPI (Annex III): This form has subsumed the erstwhile form for portfolio reporting as provided for listed Indian companies, Mutual Fund (MF), Alternative Investment Fund (AIF)/ Venture Capital Fund (VCF) and Employee Stock Ownership Plan (ESOP) reporting. The form has the following sections. Section A Details of the Indian entity/ Mutual Fund Section A.(A) Details of OPI by Indian entity as per Schedule II & proviso (iii) to Para 2 of Schedule V of OI Rules Section A.(B) Details of OPI by a resident individual by way of ESOP/ Employee Benefits Scheme (EBS), (reporting to be done by office/ branch/ subsidiary/ Indian entity concerned) as per Para 1(2)(iii)(h) and Para 3 of Schedule III of OI Rules) Section A.(C) Details of OPI by MF as per Para 2 of Schedule IV of OI Rules Section B Details of OPI by AIF/ VCF as per Para 2 of Schedule IV of OI Rules Section C Certificate from Indian entity/ MF/ AIF/ VCF, as the case may be 876. Form FLA: This form is required to be submitted directly by all the Indian entities which have made ODI in the previous year(s) including the current year, to the Department of Statistics and Information Management (DSIM), Reserve Bank of India. The form FLA is available on RBI’s website viz. www.flair.rbi.org.in and needs to be reported by July 15th of every year. AD banks are advised to ensure submission of Form FLA due, before undertaking any remittance for the Indian entity. 7. The forms listed at paragraphs 3, 4 and 5 above, are required to be submitted to the designated AD bank as per the format provided in these directions. i. Form FC is to be submitted (Sections A,B,C,D &E) by a person resident in India making a financial commitment in the foreign entity at the time of undertaking outward remittance or financial commitment, whichever is earlier. ii. Any restructuring of the balance sheet of the foreign entity involving diminution in the total value of the outstanding dues towards a person resident in India who has made ODI in the foreign entity, on account of investment in equity or debt, shall be reported by such person, in Section F of Form FC within 30 days from the date of such restructuring. iii. A person resident in India undertaking disinvestment in the foreign entity, shall report such disinvestment in Section G of Form FC within 30 days from the date of receipt of disinvestment proceeds. iv. Form OPI is to be submitted by a person resident in India other than a resident individual within 60 days from the end of the half-year (i.e., September or March end as the case maybe) in which such OPI or transfer by way of sale is made. 8. The revised forms and these instructions for filling up the forms shall come into effect immediately. The revised forms can also be downloaded from the Reserve Bank’s website viz. www.rbi.org.in. 9. It may be noted that as per Regulation 11(1) of OI Regulations, in case a person resident in India does not submit the evidence of investment within the time specified under Regulation 9(1) of OI Regulations or does not make any filing within the time specified under Regulation 10 of OI Regulations, such person may make such submission or filing along with Late Submission Fee (LSF) within such period as may be advised. However, such facility can be availed within a maximum period of 3 years from the due date of such submission or filing. 8810. In terms of Regulation 11(2) of OI Regulations, in case a person resident in India responsible for submitting the evidence of equity investment or any filing relating to overseas investment in accordance with the Act or regulations made thereunder before the date of publication of OI Regulations in the Official Gazette, who has not made or did not make such submission or filing within the time specified thereunder, may make such submission or filing along with LSF or make payment of LSF where such submission or filing has been done, as the case may be, within such period as may be advised. However, such facility can be availed within a maximum period of 3 years from the date of publication of OI Regulations in the Official Gazette. The rates and the manner in which LSF may be paid is laid down in paragraph 18 of OI Directions. 11. Any person resident in India, who has not submitted any filing relating to overseas investment specified in accordance with FEMA, 1999, or regulations made thereunder before the date of publication of OI Regulations in the Official Gazette, shall report the same using the revised forms. For such submissions, the corresponding extant Regulations, as stipulated by the Reserve Bank from time to time may be referred. 12. The forms received by the AD bank should be preserved UIN-wise for onward submission to the Reserve Bank, if and when required. 13. The AD banks should put in place proper processes and systems and issue necessary instructions to all the dealing officials at the bank/ branch to ensure compliance with these Directions. Further, as envisaged under Regulation 12 of OI Regulations, AD banks shall ensure that a person resident in India who has made a financial commitment in a foreign entity as per FEMA provisions, shall not make any further financial commitment whether fund-based or non-fund-based, directly or indirectly, towards the foreign entity or transfer such investment, till any delay in reporting is regularized. Failure to comply with the reporting requirements, with or without LSF, within the time as specified in the OI Regulations shall lead to a contravention under Section 13 of FEMA, 1999. 14. Reserve Bank reserves the right to place the information received through the forms in the public domain. 89Annex I FORM FC: Section A Details of Indian Entity (IE)/ Resident Individual (RI)/ Trust/ Society (Along with Section A and B of this Form only the relevant section(s) as applicable may be used) I Name, Code of designated AD bank and branch II Investment under Automatic Route Approval Route (Please tick) III Particulars of the IE/ RI/ Trust/ Society i. Name of IE/ RI/ Trust/ Society ii. PAN iii Legal Entity Identifier (LEI) iv Group company of IE (where the guarantee is extended by a group company) v Activity code of IE (1987 NIC code at 3-digit level) (2008 NIC code at 5-digit level) vi Address of IE/ RI/ Trust/ Society vii City viii State ix PIN code x Net worth in INR as on last audited balance sheet of the IE (In case of reporting of guarantee by a group company, the Net worth of such group company shall be reported) Note: Please refer to Regulation 5(2) of OI Regulations, in case of a guarantee extended by a group company. xi Sum of the Financial Commitment (FC) w.r.t. all in Foreign Currency (FCY) in INR foreign entities of the IE/ RI/ group company/ Trust/ Society made until the date of the current transaction and FC being undertaken currently Note: For computing the INR equivalent of the current FC the exchange rate as on date of current transaction or date of reporting, whichever is earlier, may be used. xii Contact Person xiii Designation of the contact person xiv Telephone Number xv Mobile Number 90xvi E-mail ID IV Status of IE/ RI/ Trust/ Society: (Please tick appropriate category) i. Public Sector Company vi. Society ii. Private Sector Company vii. LLP iii. Individual viii. Others (please specify) iv. Registered Partnership v. Trust V Whether the IE/ RI/ group company/ Trust/ Society making FC From Date To Date (if Name of or undertaking disinvestment is under Investigation/ is a wilful applicable) Regulator/ defaulter/ has account as NPA (please refer to Rule 10 of OI Agency/ Rules). If yes, mention the name of the Regulator/ Lender investigating agency/ lender bank and the duration of investigation VI Particulars of existing foreign entities of the IE/ RI/ group company/ Trust/ Society already in operation or under implementation (Attach separate sheet if required) Name of foreign entity Unique Identification Number (UIN) Name of the designated AD allotted by Reserve Bank bank i. Form FC: Section B Details of the foreign entity/ Step-Down Subsidiary (SDS) Indicate 13-digit Unique Identification Number issued by the Reserve Bank (if applicable) VII Particulars of foreign entity i. Name ii. Address iii. Name of the country/ jurisdiction iv Whether the foreign entity is a start-up or has its Startup Strategic sector Financial Others core activity in strategic sector or is engaged in Services financial services v Date of incorporation of the foreign entity vi Legal Entity Identifier (LEI) of the foreign entity vii E-mail ID of the foreign entity viii Accounting year followed by the foreign entity ix Activity code of the foreign entity (1987 NIC code at 3-digit level) (2008 NIC code at 5-digit level) 91x Financial commitment being made w.r.t above Equity Loan Non-fund based foreign entity (in INR and FCY) capital commitment xi Sum of the Financial Commitment (FC) by IE/ RI/ In FCY In INR group company/ Trust/ Society w.r.t. this UIN made until the date of the current transaction and the FC being undertaken currently Note: For computing the INR equivalent of the current FC the exchange rate as on date of current transaction or date of reporting, whichever is earlier, may be used. VIII Proposed/ updated share-holding pattern in the foreign entity i. Person resident in India % stake ii. Foreign partner(s) % stake (1) (1) (2) (2) (3) (3) IX Whether the person resident in India has control in the foreign Yes/ No entity (Refer to the definition of “control” in the OI Rules) X Furnish the details of SDS of foreign entity in respect of which the FC is being undertaken, if applicable. (Attach separate sheet if required) i. Name, level and country/ jurisdiction of SDS ii. Name, level and country/ jurisdiction of parent SDS/ foreign entity iii. Investment amount and date of investment (if any): iv Legal Entity Identifier (LEI) of the SDS v Type of SDS (SPV/ holding company/ operating/ operating cum holding) vi Activity code of SDS as per 1987 and 2008 NIC code vii % stake held by the parent in the SDS FORM FC: Section C Details of transaction/ remittance/ Financial Commitment (FC) of the person resident in India Indicate 13-digit Unique Identification Number (UIN) issued by Reserve Bank (if applicable) S. Method or Category of investments Other details No source of Date Amount investments 1 Banking Equity capital Loan Guarantee channel invoked 922 ECB Equity capital Loan Guarantee invoked 3 ADR Equity capital Loan Guarantee invoked 4 GDR Equity capital Loan Guarantee invoked 5 Swap of Equity capital securities 6 Capitalization – Equity capital exports 7 Capitalization – Equity capital others @ (specify) 8 Others – fund Equity capital Loan based (please specify) (e.g., acquisition by way of exercise of Rights) 9 Corporate or Corporate Personal Corpora Issue date Validity personal guarantee by guarantee te date guarantee Indian Entity guarant issued (IE) ee by third party 10 Performance Issue date Validity guarantee date Issued 11 Bank Guarantee Bank Guarantee Issued Issue date Validity Issued date (Mention name of the Bank) 12 Rollover/ (Specify) Rollover date Validity Change in date guarantee $ 13 Pledge/ creation Shares of Movable & Other Date of Validity (Amount to be of charge – foreign entity/ immovable financi creation Date reckoned as foreign assets SDS properties of al FC) foreign entity/ assets SDS 9314 Creation of Shares of IE Movable & Other Date of Validity (Amount to be charge – and/or its immovable financi creation date reckoned as domestic assets group properties of al FC) (name of the companies IE and/ or its assets overseas group of IE lender) and/ or its group 15 Conversion of (Specify) Date of conversion Amount loan to equity $$ 16 FC as a result Equity capital Loan Guara Date of merger of merger of ntee foreign entity/ SDS (Please specify amount in each category) 17 FC as a result Equity capital Loan Guara Date of transaction of sale/transfer/ ntee merger by/of Indian entities/ group companies (Please specify amount in each category) 18 Others (specify) Please give the date of transaction, category and amount of FC (e.g., deferred payment*/gift/ inheritance/by IE/ Resident individual (RI) (as the case may be) Note *to be reported as non-fund-based commitment at the time of acquisition of equity capital on deferred payment basis in compliance with Regulation 7 of the OI Regulations. Further, at the time of remittance the non-fund-based commitment shall be reported as converted to equity capital. @ Please specify the dues being capitalized – incorporation expenses or the other dues viz., royalty, technical know-how fee, consultancy fees, etc. $ In case of rollover / change in guarantee please furnish the following details in the field a) Date of change/ rollover of guarantee; b) Validity date of the new guarantee; c) New guarantee amount d) 15-digit transaction number allotted by the Reserve bank when the original guarantee was reported online. $$ In case of conversion of loan into equity, please furnish the following details a) Date of conversion b) Amount converted into equity c) 15-digit transaction number allotted by the Reserve Bank when the original remittance towards loan was reported online. 94To be filled by the AD branch (strike out whichever is not applicable) We hereby confirm that the remittance/transaction of (amount to be given in both in FCY and INR) _________________ towards _________ (equity/ loan/ guarantee/ non-fund based commitment) is in accordance with the provisions contained in the FEMA,1999, OI Rules, OI Regulations and the directions issued by the Reserve Bank from time to time. We are satisfied with the bona fides of the transaction in terms of the provisions contained in Sub-section 5 of Section 10 of FEMA,1999. Signature of authorized official of AD Stamp/ seal bank Name & designation of the Authorized Official of AD bank Place Date Telephone No. Email FORM FC: Section D Declaration by the Indian entity (IE)/ Resident Individual (RI) (Strike out whichever is not applicable) (a) I/ We have an account appearing as Non-Performing Asset (NPA)/wilful defaulter, or am/ are under investigation by a financial sector regulator, or am/ are under investigation by investigative agencies in India, viz., Central Bureau of Investigation or Directorate of Enforcement or Serious Frauds Investigation Office Accordingly, i. NOC has been obtained & enclosed herewith as prescribed under Rule 10 of the OI Rules, or ii. The lender bank(s)/regulatory body/investigative agency concerned failed to furnish the objection(s) within sixty days from the date of receipt of application for NOC. (b) Wherever applicable, the Share certificate/ other evidence as required in Regulation 9 and other reporting requirement as required in terms of Regulation 10 of OI Regulations, as stipulated by the Reserve Bank from time to time, in respect of the foreign entity under this UIN has been submitted/completed. (c) Financial commitment undertaken by means of debt is in compliance with OI Rules and OI Regulations, or corresponding extant Regulations in case where the transaction has been done under the earlier overseas investment framework**, as stipulated by the Reserve Bank from time to time. (d) Pricing and valuation norms as per OI Rules and OI Regulations, or corresponding extant Regulations in case where the transaction has been done under the earlier overseas investment framework**, as stipulated by the Reserve Bank from time to time, wherever applicable, have been complied with. (e) It is certified that no delay in reporting is pending for regularization as required under Regulation 12 of OI Regulations. (f) The foreign securities acquired by way of gift from a person resident outside India, is in accordance with the provisions contained in Foreign Contribution (Regulation) Act, 2010, and the rules and regulations made thereunder and Para 2 of Schedule III of OI Rules. (g) This remittance/transaction amount together with earlier remittances/transactions relating to all the current and capital account transactions under the Liberalised Remittance Scheme during this Financial Year is within the limit as provided under the scheme. The total amount of remittances/transactions done by me during the Financial Year until the date of this certificate is ___________(in FCY) the INR equivalent of which works out to INR __________. 95I/ We hereby certify that the information furnished above are true and correct. I/We also duly acknowledge that if any information furnished by me/us is found to be false and/or incorrect, it shall be construed that the reporting requirements under FEMA, 1999, have not been complied with. Signature of the Authorized official Stamp/ seal of the IE/ RI Name & designation of the Authorized Official of IE/ RI Place Date Telephone No. Email List of enclosures Note: ** Notification No. FEMA.19/RB-2000 dated 3rd May 2000 and Notification No.FEMA.120/RB-2004 dated July 7, 2004, as amended from time to time FORM FC: Section E Certificate by the Statutory Auditors of the Indian Entity (IE)/ Group Company, as applicable (Strike out whichever is not applicable) It is certified that the terms and conditions contained in OI Rules and OI Regulations have been complied with by the Indian Entity/ Group Company, as applicable, _____________________________________ (Name of the Indian Entity/ Group Company) in respect of the investment under report. In particular, it is certified that (strike out whichever is not applicable): i. The investment is not in violation of the provisions contained in Rule 19 of Foreign Exchange Management (Overseas Investment) Rules, 2022 or corresponding extant Regulations in case where the transaction has been done under the earlier overseas investment framework**, as stipulated by the Reserve Bank from time to time. ii. The NOC as required in terms of Rule 10 of Foreign Exchange Management (Overseas Investment) Rules, 2022 has been obtained, wherever applicable. iii. The remittance/transaction amount towards the investment together with earlier Financial Commitment is within the limit as stipulated by the Reserve Bank from time to time. The total financial commitment of the Indian entity __________________________ (Name of the Indian entity) is _______(in foreign currency) the INR equivalent^ of which works out to INR______that works out to ____% of its Net Worth which is INR ___________/-, as on the date of last audited balance sheet, i.e., (date ________) iv. Indian entity has complied with the pricing/valuation norms prescribed in Foreign Exchange Management (Overseas Investment) Rules, 2022, or corresponding extant Regulations in case where the transaction has been done under the earlier overseas investment framework**, as stipulated by the Reserve Bank from time to time. The valuation for the investment in _______ (no of shares/% stake) is arrived at _________ (amount in FCY).@ v. Indian entity has complied with the conditions prescribed in para 2 of Schedule I of Foreign Exchange Management (Overseas Investment) Rules, 2022 on ODI in Financial services activity, or corresponding extant Regulations in case where the transaction has been done under the earlier overseas investment framework**, as stipulated by the Reserve Bank from time to time, wherever applicable. vi. We have verified the records and certify that no delay in reporting is pending for regularization as required under Regulation 12 of Foreign Exchange Management (Overseas Investment) Regulations, 2022. vii. The amount of the guarantee(s) given by the group company of the Indian entity (as holding/ subsidiary/ promoter group company), together with the Financial Commitment/s of the group company, if any, are within the limit as provided in Foreign Exchange Management (Overseas Investment) Rules, 2022 read with the provisions contained in Foreign Exchange Management (Overseas Investment) Regulations, 2022 and Foreign Exchange Management (Overseas Investment) Directions, 2022. The total financial commitment of the Indian entity __________________________ (Name of the Indian entity) is -------(in foreign currency) the INR equivalent^ of which works out to INR that works out to ____% of 96its Net Worth which is INR ___________/-, as on the date of last audited balance sheet, i.e., (date ________) Note: @ Valuation certificate is attached * Please refer to Regulation 5(2) of OI Regulations, in case of a guarantee extended by a group company. ^ Exchange rate of INR shall be taken on the date of financial commitment or this certificate, whichever is earlier ** Notification No. FEMA.19/RB-2000 dated 3rd May 2000 and Notification No.FEMA.120/RB-2004 dated July 7, 2004, as amended from time to time Signature of the Statutory Stamp/ seal Auditors of the Indian entity Name of the audit firm, Registration number and UDIN Place Date Telephone No. Email Form FC–Section F Reporting of restructuring of the balance sheet of the foreign entity involving diminution in the total value of the outstanding dues towards person resident in India on account of investment in equity and debt Note: All amounts should be in a single foreign currency and in actuals 13 digit Unique Identification Number allotted by the Reserve Bank Name, AD Code and branch of the designated AD bank S. No. Particulars I PAN and Name of the Indian Entity (IE) Name of the foreign entity II III % Stake held by IE in the foreign entity Total amount of Financial Commitment undertaken by IE in IV this UIN till date a) Equity b) Debt c) Guarantee/ other non-fund based commitment Total accumulated losses (based on latest audited financial V statements) Proportionate amount of accumulated losses based on share VI of the IE VII Date of restructuring Total outstanding dues towards the IE as on date of VIII restructuring 97IX Amount of diminution in the total value of the outstanding dues a) Equity b) Debt c) Receivables (i) Interest (ii) Dividend . (iii) Others (Specify) X Date of the valuation certificate XI Total amount of financial commitment post restructuring a) Equity b) Debt c) Guarantee/ other non-fund based commitment XII % stake held by IE post restructuring Declaration by the Indian Entity (IE) (Strike out whichever is not applicable) a. The foreign entity has been incurring losses for last 2 years b. The amount of original investment is less than USD 10 million OR The amount of original investment is more than USD 10 million and the diminution in value has been duly certified on an arm’s length basis by a registered valuer as per the Companies Act, 2013 (18 of 2013) or corresponding valuer registered with the regulatory authority or certified public accountant in the host jurisdiction and the certificate is dated not more than six months before the date of restructuring c. The amount of diminution in value of the outstanding dues is less than twenty per cent of the total value of the outstanding dues towards the IE OR The amount of diminution in value of the outstanding dues is more than twenty per cent. of the total value of the outstanding dues towards the IE and the diminution in value has been duly certified on an arm’s length basis by a registered valuer as per the Companies Act, 2013 (18 of 2013) or corresponding valuer registered with the regulatory authority or certified public accountant in the host jurisdiction and the certificate is dated not more than six months before the date of restructuring I/ We hereby certify that the information furnished above are true and correct. I/We also duly acknowledge that if any information furnished by me/us is found to be false and/or incorrect, it shall be construed that the reporting requirements under FEMA, 1999, have not been complied with. Place Place Date Date (Signature and seal of authorised official of the (Signature and seal of authorised official of the AD) IE/ RI) 98Name Name Designation Designation Tel. No. Tel. No. Email Email Note: AD bank may ensure that the certificate furnished is in accordance with Para 14 of FEM (Overseas Investment) Directions. Form FC–Section G Reporting of disinvestment in the foreign entity by way of sale or transfer of equity capital/buyback of equity capital/closure/voluntary liquidation/winding up/merger /amalgamation Note: All amounts should be in a single foreign currency and in actuals 13 digit Unique Identification Number (UIN) allotted by the Reserve Bank Name, AD Code and branch of the designated AD bank S.No. Particulars of transaction I Date of submission of last APR and period to which last APR relates II Disinvestment route(tick) Approval Route Automatic Route III Disinvestment type (tick) Full disinvestment Partial Disinvestment IV Date of disinvestment V PAN and name of the disinvesting person resident in India VI % Stake held at the time of % stake disinvested in case of partial disinvestment disinvestment VII Method of disinvestment Details to be furnished as Annex to the Form FC Section G along with relevant documentary evidence (Please strike out whichever method is not applicable) 99i. Sale or transfer of equity capital to another Furnish the details of the entity buying the stake and person resident in India/ foreign partner/ whether the entity purchasing the stake is an existing Individual or merger/ liquidation of IE foreign partner/ Indian partner in the foreign entity or a foreign party/ person resident in India buying stake in the concerned foreign entity for the first time. ii. C losure/voluntary liquidation of the foreign entity Please attach relevant documentary evidence iii. Buy back by the foreign entity Please attach relevant documentary evidence iv. Merger of two or more foreign entities of the Furnish details of merging foreign entity and the surviving same person resident in India foreign entity such as name, UIN of the foreign entity and the name of the person resident in India concerned of both the foreign entities.Also furnish details of SDS of those foreign entity which shall merge. v. Merger of the foreign entity with the step down Furnish UIN of the merging foreign entity, the name of the subsidiaries of the same person resident in person resident in India holding indirect stake in SDS, India or another name of the SDS. Level of SDS, name and country/ jurisdiction of SDS and immediate parent of SDS vi. Merger of foreign entity with an independent Furnish the detail of the foreign company such as name foreign company not having any relation with and address the IE/ RI/ Trust/ Society VIII Summary of the financial commitment (cumulative amount) in respect of the foreign entity Equity Loan Guarantees issued/ other Guarantee invoked/ Other non-fund based financial fund based financial commitment commitment 100IX Date wise details of remittances/ transaction (attach separate sheet if necessary) Date of remittance /transaction Method of investment Category of investment Amount X Fair value of the total disinvestment as per the valuation report and date of valuation report, wherever applicable XI Whether there is write off (i.e. the difference between the original amount (proportionate amount in case of partial disinvestment) of investment made and the amount of consideration received on account of disinvestment, where the latter is less than the former)? If yes, please provide the amount of write off Equity Loan Others (please specify) XII Amount repatriated on disinvestment (attach separate sheet if necessary) Equity Loan Others (please specify) XIII Amount repatriated since reporting of the last APR except the disinvestment proceeds Equity Loan Others (please specify) Declaration (a) The transfer is subject to a price arrived on an arm’s length basis. Copies of the necessary documents/ valuation as required by the AD bank have been furnished to the AD bank. (b) In case the transfer is on account of merger, amalgamation or demerger or on account of buyback of foreign securities, such transfer, or liquidation (in case of liquidation of the foreign entity), it has the approval of the competent authority as per the laws in India and/or the host country/jurisdiction, as the case may be (c) the transferor, in case of full disinvestment other than by way of liquidation, does not have any dues outstanding for receipt, which the transferor is entitled to receive from the foreign entity as an investor in equity capital and debt. (d) the transferor has stayed invested for at least a year from the date of making ODI. (e) All the remittances/ transactions have been reported to Reserve Bank and it reconciles with the remittances / transaction details reported to the Reserve Bank. (f) All the guarantees issued on behalf of the foreign entity and its SDS are either novated to another entity or the guarantees are closed. (g) In case any SDS has become the direct foreign entity as a result of disinvestment in the foreign entity then it is certified that relevant sections of the Form FC with respect to all such SDS are submitted to Reserve Bank through the AD bank for allotment of UIN. 101(h) I/ We hereby certify that the information furnished above are true and correct. I/We also duly acknowledge that if any information furnished by me/us is found to be false and/or incorrect, it shall be construed that the reporting requirements under FEMA, 1999 have not been complied with. Place Place Date Date Signature and seal of authorised official of the IE / RI) (Signature and seal of authorised official of the AD) Name Name Designation Designation Tel. No. Tel. No. Email Email Instructions for filling up the Form FC 1) The Form FC is required to be submitted to the designated AD bank by the person resident in India seeking to invest in the foreign entity, whether under Automatic Route or Approval Route. 2) Under Approval Route, the Form FC after scrutiny, should be submitted by the AD bank, to the Reserve Bank as per the instructions in Para 3 of FEM (Overseas Investment) Directions, 2022. 3) The Form FC is to be submitted while undertaking financial commitment in a foreign entity, at the time of sending outward remittance or making a financial commitment, whichever is earlier. 4) In case of acquisition of equity capital on deferred payment basis in accordance with Regulation 7 of OI Regulations, the part of the consideration, payment of which is deferred by the person resident in India shall be treated as non-fund-based commitment and shall be reported accordingly. Subsequent remittance towards the payment of deferred consideration shall be reported in Form FC as conversion of non-fund-based commitment to equity capital. This subsequent remittance will not be treated as fresh financial commitment for the purpose of the investment limit. Thus, there will be two submissions in case of deferred payment and in case of delay in any of the submissions, facility of Late Submission Fee may be availed. 5) In the case of non-fund based financial commitment, Form FC can be submitted before undertaking such financial commitment. Any change in the date of undertaking the financial 102commitment or the validity date, as the case may be, in the submitted Form FC for such financial commitment, shall be informed to the AD bank latest by the next working day from the date of undertaking such financial commitment. 6) Any roll-over of a guarantee must be reported in Form FC. 7) Along with Section A and B of Form FC only the relevant section(s), as applicable, may be submitted. For undertaking financial commitment, including roll-over and conversion of loan to equity, transaction details in Section C, declaration by the Indian entity/resident individual in Section D and certificate by the Statutory Auditors of the Indian entity /group company, as the case may be, in Section E shall be submitted. 8) While undertaking remittance towards acquisition of equity capital on deferred payment basis, where Form FC was already submitted with duly filled Sections D & E, as non-fund based commitment, these Sections may not be furnished again. A copy of the earlier furnished Form FC may be submitted to AD for reference. 9) For subsequent remittances, Section A and B may not be filled unless there is any change in the details of the person resident in India/ foreign entity/ SDS/ capital structure submitted at the time of reporting of previous Form FC. 10) In case of issuance of guarantee by a group company, it shall be counted towards the utilization of its financial commitment limit independently and if such group company has any fund-based exposure to or from the Indian entity the same shall be deducted from the Net worth of such group company for computing its financial commitment limit and shall be reported accordingly as provided in Regulation 5(2) of OI Regulations. 11) AD may ensure that any financial commitment by an Indian entity by way of loan is duly backed by a loan agreement and that rate of interest as mentioned in such agreement is charged on an arm’s length basis. 12) AD bank may ensure that as on the date of undertaking the actual financial commitment, the person resident in India does not breach the limit of financial commitment prescribed by Reserve Bank. 13) In case of personal guarantee issued by a resident individual promoter, such guarantee shall be reckoned towards the financial commitment limit of the Indian entity. 14) In case more than one person resident in India is investing in the same foreign entity, Form FC shall be submitted individually by all such investing persons to the designated branch of the AD bank. The AD bank should report the forms online indicating details of each party. The Reserve Bank would allot only one UIN to a foreign entity. 15) The level of step-down subsidiary (SDS) shall be calculated treating the foreign entity as the parent. So, an SDS directly under the direct foreign entity should be treated as first level SDS. Accordingly, an SDS under the first level SDS would be treated as second level SDS, so on and so forth. 10316) Section F of Form FC is required to be submitted by such person resident in India whose financial commitment changes as a result of the restructuring of the balance sheet of the foreign entity. This should be submitted within 30 days from the date of such restructuring. 17) The Form FC is to be submitted while undertaking disinvestment in a foreign entity, within 30 days from the date of receipt of disinvestment proceeds (inward remittance). Where the disinvestment proceeds are received in tranches in accordance with the agreement, each such receipt shall be reported in Form FC. 18) All amounts of foreign currency (FCY) and Indian Rupees (INR) should be in actuals only. 19) The name of the FCY may be indicated as per SWIFT code. 20) The dates shall be in the format of DD/MM/YYYY. 21) The activity code as per NIC 1987 and NIC 2008 shall be furnished. 22) Each page of the Form FC should be duly signed and stamped with date by the person resident in India submitting the same. 23) Reserve Bank reserves the right to put the information furnished here in the public domain. 104Annex II ANNUAL PERFORMANCE REPORT (APR) Note: all amounts should be in actuals. All the figures should be in a single foreign currency (FCY) I APR for the period From date To Date II Unique Identification Number (UIN) III Capital structure as on the last day of the accounting year of the foreign entity Amount % share i) Indian ii) Foreign IV Whether the Indian Entity (IE)/ Resident Individual (RI)/ Trust/ Society Yes/ No has control in the foreign entity V Change in the share holding pattern during the reporting year (Furnish the updated share holding pattern, if applicable, in the foreign entity) Pers on resident in India % Stake Foreign partner(s) % Stake (1) (1) (2) (2) (3) (3) VI Financial Position of the foreign entity for the last two years Previous Year Current Year i) Net Profit/ (Loss) ii) Dividend iii) Net worth VII Repatriation from the foreign entity Current Year Since commencement of business (i) Dividend (ii) Repayment of loan (iii) Non-Equity Exports Realised (in INR) (iv) Royalties (v) Technical know-how Fees (vi) Consultancy fees (vii) Others (please specify) VIII Profit IX Retained earnings X FDI by foreign entity/ SDS into India XI Refund of excess share application money @Transaction No. - 105@ Furnish 15 / 17-digit transaction number allotted by Reserve Bank allotted at the time of reporting of remittance in the online OID application. XII Furnish the details of acquisition or setting up or winding up or transfer of step-down subsidiary or subsidiaries of foreign entity during the reporting year in the format as provided, if applicable (attach separate sheet if the number of SDS is more than one) (i) Name, level and country/jurisdiction name of SDS (ii) Name, level and country/jurisdiction name of the parent of SDS (iii) Investment amount and date of investment (if Currency: Date: any) Amount: (iv) Activity code as per 1987 Activity code as per 2008 (v) % Stake held in SDS (vi) Is the activity of SDS into financial services (tick) Yes No (vii) Name, level and country/jurisdiction of SDS wound up during the reporting period, wherever applicable Declaration from Indian entity/ resident individual (Strike out whichever is not applicable) I/We the Indian entity/ resident individual (wherever applicable) further confirm that: i. Acquisition/ setting up/ winding up/transfer of the SDS and changes in the shareholding pattern of the foreign entity since last APR have been reported as required in terms of Regulation 10(4)(c) of OI Regulations or corresponding extant Regulations in case where the reporting is being done under the earlier overseas investment framework** as stipulated by the Reserve Bank from time to time. ii. The structure of SDS is in compliance with the structural requirements of the foreign entity as provided in OI Rules. iii. We have received share certificate/s (or any other evidence of investment as per the applicable laws of the host jurisdiction) and submitted the same to the designated AD bank for verification within 6 months of making the remittance/s for all investments/ capitalization which are reckoned as ODI in the foreign entity under this UIN, as per Regulation 9 (1) of OI Regulations or corresponding extant Regulations in case where the reporting is being done under the earlier overseas investment framework** as stipulated by the Reserve Bank from time to time. iv. The previous APRs for the foreign entity under this UIN, have been filed. v. Repatriated to India, all dues receivable from the foreign entity under this UIN, as required under Regulation 9 (4) of OI Regulations or corresponding extant Regulations in case where the reporting is being done under the earlier overseas investment framework** as stipulated by the Reserve Bank from time to time. vi. I/ We hereby certify that the information furnished above are true and correct. I/We also duly acknowledge that if any information furnished by me/us is found to be false and/or incorrect, it shall be construed that the reporting requirements under FEMA, 1999 have not been complied with. Signature of the authorized official of the IE Stamp/ seal approved by the Board/ RI Name & Designation of the Authorized Official of the IE/ RI Place Date Telephone No. Email 106Certificate of the Statutory Auditor (in case of Indian entity) / Chartered Accountant in case of resident individuals (strike out whichever is not applicable) We hereby certify that: i. APR for the year ended _______is prepared on the basis of audited/ unaudited balance sheet of the foreign entity for the year ended _________. ii. APR for the year ended _______is prepared on the basis of unaudited balance sheet of the foreign entity since audit is not mandatory in host country/jurisdiction and the IE/RI does not have ‘control’ in the foreign entity in compliance with explanation (a) to Regulation 10(4) of Foreign Exchange Management (Overseas Investment) Regulations, 2022. iii. The IE/ RI repatriated to India, all dues receivable from the foreign entity under this UIN, as required under Regulation 9 (4) of Foreign Exchange Management (Overseas Investment) Regulations, 2022 or corresponding extant Regulations in case where the reporting is being done under the earlier overseas investment framework** as stipulated by the Reserve Bank from time to time, and it has been verified from the Foreign Inward Remittance Certificate issued by the AD bank/s. Signature of the Statutory Auditors Stamp/Seal /Chartered Accountant Name of the audit firm, Registration number and UDIN Place Date Email Certificate by the Authorized Dealer bank i. In terms of Regulation 9 (1) of OI Regulations, the AD Bank has received the share certificate/s or any other document as evidence of investment as per the applicable laws of the host jurisdiction and we are satisfied about the bona fides of the documents so received. ii. The duly filled in Form (Annual Performance Report) was submitted by the Indian entity/resident individual on ___________ day of ___________ (month) ________________________ (year). iii. All the previous year APRs submitted by the (Name of the Indian entity/ resident individual) have been reported in the online OID application. Signature of the Authorized Official of the Stamp/ seal AD bank Name and designation of the AD bank official Place Date Instructions for filling up the Annual Performance Report (APR) 1) A person resident in India acquiring equity capital in a foreign entity which is reckoned as ODI, shall submit an APR with respect to each foreign entity every year till the person resident in India is invested in such foreign entity, by December 31st and where the accounting year of the foreign entity ends on December 31st, the APR shall be submitted by December 31st of the next year. 2) The APRs shall not be submitted in the following cases, 107(i) If a person resident in India is holding less than 10 per cent of the equity capital without control in the foreign entity and there is no other financial commitment other than by way of equity capital. (ii) When the foreign entity is under liquidation, from the date of initiation of the liquidation process. (iii) For the broken period (i.e. full year not completed) at the time of disinvestment. However, the details of transactions if any that had been undertaken during the time from the date of submission of the last APR till the date of disinvestment/initiation of liquidation process may be duly reported in the Form FC. 3) The APR shall be based on the audited financial statements of the foreign entity. Where the person resident in India does not have ‘control’ in the foreign entity and the laws of the host jurisdiction does not provide for mandatory auditing of the books of accounts, the APR may be submitted based on unaudited financial statements certified as such by the statutory auditor of the Indian entity or by a chartered accountant where the statutory audit is not applicable including in case of resident individuals. 4) In case more than one person resident in India have made ODI in the same foreign entity, the person resident in India holding the highest stake in the foreign entity shall be required to submit APR. In case of holdings being equal, APR may be filed jointly by such persons resident in India. It is also clarified that where APR is required to be filed jointly, either one investor may be authorized by other investors, or such persons may jointly file the APR. 5) The person resident in India shall report the details regarding acquisition/ setting up / winding up/ transfer of an SDS or alteration in the shareholding pattern in the foreign entity during the reporting year in the APR, failing which it shall amount to non-submission of APR. 6) The person resident in India shall ensure that all the previous year APRs have been submitted to the designated AD bank. 7) Capital structure (para III of form APR) should be in cumulative and the % stake should be a total of all the persons resident in India in the foreign entity 8) In Para VII the figures under “since commencement of business” should be equal to or more than the figure mentioned under current year. 9) In Para VII (ii), Redemption of preference shares (not in the nature of compulsorily convertible preference shares (CCPS)) should also be reported. 10) In Para VII (vii), other receipts which are not mentioned in the table like interest on loan or license fee etc. shall be mentioned. 11) In Para IX, the part of the profits of the foreign entity which is retained and reinvested in such foreign entity shall be mentioned. The retained earnings are to be calculated as per the procedure laid down by the International Monetary Fund in the latest version of their 108publication “Balance of Payments and International Investment Position Manual”. It is to be noted that the negative retained earnings is to be treated as ‘0’ (zero). 12) The level of step-down subsidiary (SDS) shall be calculated treating the foreign entity as the parent. So, an SDS directly under the foreign entity should be treated as first level SDS. Accordingly, an SDS under the first level SDS would be treated as second level SDS and so on and so forth. 13) In case of Para XII, the structure of SDS should be in compliance with the structural requirements of the foreign entity i.e the structure of such subsidiary/ SDS shall also have limited liability where the foreign entity’s core activity is not in strategic sector. The investee entities of the foreign entity where such foreign entity does not have control may not be treated as SDSs and therefore may not be reported. 14) In case of Para XII (vi), if the SDS is engaged in the activity of financial services, the investment shall be in compliance to the provisions contained in Para 2 of Schedule I of OI rules. 15) The activity code as per NIC 1987 and NIC 2008 shall be furnished. 16) The date may be mentioned in format DD/MM/YYYY format. 17) The name of the foreign currency (FCY) shall be indicated as per SWIFT code 18) Each page of the Form FC should be duly signed and stamped with date by the person resident in India submitting the same. 19) All amounts of foreign currency (FCY) and Indian Rupees (INR) should be in actuals only. 109Annex III FORM OPI: Section A (For the half year ended March/ September) Note: To be filed by a person resident in India, other than a resident individual, making any Overseas Portfolio Investment (OPI) or transferring such investment during the reporting period (Only relevant sections of this form, as applicable, may be used) All amounts should be in actuals I Name and Code of Reporting AD bank: II Particulars of the Indian Entity/Mutual Fund (MF) i. Name of Indian entity/ MF ii. LEI of Indian entity/ MF iii. PAN iv. Address of Indian entity/ MF v. City vi. State vii. PIN code viii. Net worth in INR (in case of Indian As on date entity) as per last audited balance (Please mention sheet date) ix Whether the IE is listed Yes / No x Contact person (name & designation) xi Mobile number xii E-mail ID A. OPI by Indian entity (Please refer to Schedule II & Proviso 2(iii) of Schedule V of OI Rules) USD INR i Net Amount of Investment held abroad (opening balance) at cost basis ii Investments made during the half year (including reinvestment) iii Sale/disinvestment made during the half year * iv Net amount of Investment held abroad (closing balance) (I+II-III) Remittance amount Repatriation amount B. OPI by resident individuals by way of ESOP/ Employee Benefits Scheme (EBS) (Please refer to Para 1 (2) (iii)(h) and para 3 of Schedule III of OI Rules) (reporting to be made by by the company/ branch/ office, as the case may be 110USD INR i Net Amount of ESOP/ EBS Investment held abroad (Opening Balance) at cost basis ii Investments made during the Half Year (including reinvestment) iii Disinvestments made during the Half Year * iv Net amount of Investments held abroad (Closing Balance) (I+II-III) Remittance Amount Repatriation Amount Consolidated details of Employee Stock Ownership Plan (ESOP)/ Employee Benefits Scheme should be reported as under by the company/ branch/ office, as the case may be a. We, ……………………………………….... (Indian Company / Office / Branch), hereby declare that: M/s. ……………………………………………..………. (foreign company) has issued ……….(nature) equity capital/ % interest to our employees / directors under ESOP/ Employee Benefits Scheme during the half year as under: (i) Equity capital/% interest allotted: (ii) Number of employees/ Directors who accepted shares/ interest: b. We, ……………………………………….... (Indian Company / Office / Branch), hereby declare that: M/s. ……………………………………………..………. (foreign company) has repurchased …….. (nature) equity capital from our employees /directors under ESOP/ Employee Benefits Scheme during the half year as under: (i) equity capital repurchased: (ii) Number of employees / Directors who sold equity capital/ interest: C. OPI by Mutual Funds (please refer to Para 2 of Schedule IV of OI Rules) Opening Purchase/ Sale/ Closing Remittance Repatriatio balance acquired disinvested* balance from India n to India USD INR USD INR USD INR USD INR USD INR USD INR i Equity ii Debt Instruments iii ADR/GDR 111iv ETF (Securities) v Mutual Funds vi Others (Specify) Total (C) * The disinvestment amount should correspond to the actual investment amount made and not the sale/market value on which disinvestment took place Form OPI: Section B Reporting of the Overseas Portfolio Investment (OPI) by Venture Capital Fund (VCF)/ Alternate Investment Fund (AIF) I Particulars of the Indian entity/ resident individual (RI) who has promoted/ invested in VCF/ AIF (Attach Separate sheet if there are multiple Indian entities/ RIs) i. Name of the Indian entity/ RI ii. LEI of Indian entity iii. PAN iv. Group to which the entity belongs v. Activity code of the Indian entity (1987 NIC code at 3-digit level) (2008 NIC code at 5- digit level) vi. Address of the Indian entity/ RI vii. City viii. State ix. PIN code x. Name of the contact person xi. Designation of the contact person xii. Telephone No. xiii. Mobile No. of the contact person xiv. Fax No. xv. Email II Particulars of the Indian Company/ RI who manages the VCF/ AIF i. Name of the Indian entity/ RI ii. PAN 112iii. Group to which the entity belongs iv. Activity code of the Indian Company (1987 NIC at 3-digit level (2008 NIC at 5-digit level) v. Address of the Indian entity/ RI vi. City vii. State viii. PIN code ix. Name of the contact person x. Designation of the contact person xi. Telephone No. xii. Mobile No. of the contact person xiii. Fax No. xiv. Email III Particulars of the VCF/ AIF i. Name of the VCF/AIF ii. Date of the SEBI Approval iii. Limit of the Overseas investment granted by SEBI (Amount in actuals in USD) IV OPI by VCF/AIF (please refer to Para 2 of Schedule IV of OI Rules) Opening Purchase/ Sale/ Closing Remittance Repatriation Balance acquired disinvested Balance from India to India USD INR USD INR USD INR USD INR USD INR USD INR i Equity ii Equity linked instrument iii Other permissible instrument (furnish the details of instrument) Total 113Section C Certificate from Indian entity/ Mutual Fund/AIF/VCF (Strike out whichever is not applicable) We, the Indian entity/ Mutual Fund/ AIF/ VCF further confirm that the investment made as above are in compliance with the provisions contained in OI Rules. All the transactions effected during the half year are included above and we hereby certify that the information furnished above are true and correct. We also duly acknowledge that if any information furnished by us is found to be false and/or incorrect, it shall be construed that the reporting requirements under FEMA,1999 have not been complied with. Signature of the authorized official of the Indian entity approved by the Board or equivalent body, as the case may be/ Mutual Fund/ AIF/ VCF Stamp/Seal Name & designation of the Authorized Official of the Indian entity/ Mutual Fund/ AIF/ VCF Place Date Telephone Email ID No. Instructions for filling up Form OPI 1) In the case of Mutual Funds, the details of Indian entity responsible for filing the Form OPI (i.e Promoter/ AMC of that Mutual Fund, as decided by the Mutual Fund), may be indicated in Section A (details of Indian entity), along with mentioning the name of the Mutual Fund. 2) Section C for Mutual Fund/ AIF/ VCF may be filled in by the Indian entity responsible to file the Form OPI (as designated by the fund). 3) The date may be mentioned in format DD/MM/YYYY format. 4) All amounts should be in actuals only. 114Part IX: Trade 1) Exports (a) EDF Form (Annex I): Export Declaration Form (EDF) is used to declare export of goods from Non-EDI ports. (b) Softex form (Annex II): All software exporters are required to file single as well as bulk SOFTEX form in excel format to the competent authority for certification. (c) Advance Payments against 93Long term Exports 94(Annex III): AD Category- I banks can also allow exporters having a minimum of three years’ satisfactory track record to receive long term export advance up to a maximum tenor of 10 years to be utilized for execution of long term supply contracts for export of goods subject to conditions specified. Receipt of such advance of USD 100 million or more should be immediately intimated to the Trade Division, Foreign Exchange Department, Central Office, Reserve Bank of India. (d) AD Category –I banks are advised to efficiently follow up with the concerned exporters in order to ensure that export performance (shipments in case of export of goods) is completed within the stipulated time period. It is further reiterated that AD category –I banks should exercise proper due diligence and ensure compliance with KYC and AML guidelines so that only bonafide export advances flow into India. Doubtful cases as also instances of chronic defaulters may be referred to Directorate of Enforcement (DoE) for further investigation. 95 (e) 96Omitted (f) Taking into account the recommendation made by the Technical Committee on Facilities and Services to the Exporters (Chairman: Shri G. Padmanabhan), AD banks were permitted to factor the export receivables on a non-recourse basis, so as to enable the exporters to improve their cash flow and meet their working capital requirements subject to conditions as under: After factoring, the Export Factor may close the export bills and report the same in the Export Data Processing and Monitoring System (EDPMS) of the Reserve Bank of India. (https://www.edpms.rbi.org.in) 93 Omitted earlier by oversight, now inserted 94 Format omitted earlier by oversight, now inserted 95 Deleted/ discontinued vide AP (DIR Series) Circular No.74 dated May 26, 2016. Prior to deletion it read as “A quarterly statement indicating details of such cases may be forwarded to the concerned Regional Offices of RBI within 21 days from the end of each quarter. (Annex III)” 96 The submission of fortnightly and quarterly reports to RBI on balances of DDA accounts and opening/ closing of DDA accounts has since been done away with vide AP (DIR Series) circular No. 54 dated March 23, 2016 and FEM (Foreign Currency Accounts by a person Resident in India) Regulations, 2015 with effect from January 21, 2016 115(g) Follow-up of Overdue Bills: With operationalization of EDPMS on March 01, 2014, realization of all export transaction for shipping documents after February 28, 2014 should be reported in EDPMS. 97Details of old outstanding bills, prior to March 01, 2014 as reported by AD banks up to half year ended December 31, 2015 have been migrated to EDPMS. Hence, separate reporting of XOS has been discontinued. AD category – I banks are required to mark off / close the XOS data in EDPMS pertaining to period before (pre) March 01, 2014 as and when amount is realised (https://www.edpms.rbi.org.in) (h) AD banks should report write off of export bills through EDPMS to the Reserve Bank. (https://www.edpms.rbi.org.in) (i) EFC (Application for opening foreign currency account with a bank in India or abroad by exporters) (Annex V) (j) To facilitate e-commerce, it has been decided to permit AD Category-l banks to offer the facility of receipt/payment of/for export proceeds/imports by entering into standing arrangements with the OPGSPs. AD Category-I banks desirous of entering into such an arrangement/s should report the details of each such arrangement as and when entered into to the Foreign Exchange Department, Central Office, Reserve Bank of India, Mumbai. E 97 Inserted vide AP (DIR Series) Circular No.74 dated May 26, 2016 with effect from June 15, 2016. Prior to insertion it read as “and old outstanding shipping bills prior to March 01, 2014 should continue to be reported in XOS till completion of the cycle” 116Part IX: Annex I Export Declaration Form 2. General Information: Customs Security No.: Form No: Nature of Cargo: Shipping Bill No. & Date: Mode of Transport: [ ] Air [ ] Land [ ] [ ] Sea [ ] Post/Couriers [ ] others Government [ ] Non-Government Category of Exporter: [ ] Custom (DTA RBI approval no. & date, if any: units) [ ] SEZ [ ] Status holder exporters [ ] 100% EOU [ ] Warehouse export [ ] others (Specify)....... IE Code: AD code: Exporters Name & Address: AD Name & Address: Consignee’s Name & Address: Mode of Realisation: [ ] L/C [ ] BG [ ] Others (advance payment, etc. including transfer/remittance to bank account maintained overseas ) Port of Loading / Source Port in case of SEZ: Third Party name & Address (In case of third Party Payments for Exports) Country of Destination: Port of Discharge: Name of the Indian bank and AD code, in case of LC/BG Whether payment to be Let Export order (LEO) Date: Received through ACU? [ ] Yes [ ] No General Commodity Description: State of Origin of Goods: Total FOB value in words (INR): Custom Assessable value (INR)*: 3. Invoice –Wise details of Export Value (If more than one invoice for a particular shipping bill , the block 2 will repeat as many times of invoices) Invoice No. Invoice Currency: Nature of Contract: [ ] FOB [ ] CIF [ ] C&F Invoice date. Invoice Amount: [ ] CI [ ] Others Particulars Currency Amount in FC Exchange Rate Amount (INR) FOB Value Freight Insurance Commission Discount Other Deduction 117Packing Charges Net Realisable value EXPORT DECLARATION FORM 4. Applicable for Export under FPO/Couriers Stamp & Signature of Authorised Dealer 5. Declaration by the Exporters (All types of exports) I /We hereby declare that I/we @am/are the seller/consignor of the goods in respect of which this declaration is made and that the particulars given above are true and that the value to be received from the buyer/third party represents the export value contracted and declared above. I/We undertake that I/we will deliver to the authorised dealer bank named above the foreign exchange representing the full value of the goods exported as above on or before........................ (i.e. within the period of realisation stipulated by RBI from time to time ) in the manner specified in the Regulations made under the Foreign Exchange Management Act, 1999. I/We @ am/are not in the Caution List of the Reserve Bank of India. Date: (Signature of Exporter) 5. Space for use of the competent authority (i.e. Custom/SEZ) on behalf of Ministry concerned: Certified, on the basis of above declaration by the Custom/SEZ unit, that the Goods described above and the export value declared by the exporter in this form is as per the corresponding invoice/gist of invoices submitted and declared by the Unit. Date: (Signature of Designated/Authorised officials of Custom /SEZ) @ Strike out whichever is not applicable. * Unit declared Value in case of exports affected from SEZs 118Part IX: Annex II Format of Softex Forms submitted in bulk for royalty receipt Summary Sheet Section A Name and address of Exporter IEC Code. Letter of Permission (LOP) Date of LOP issued No.(STP/EHTP/SEZ/EPZ/100% EOU/DTA Unit) Name of Authorised Datacom Service Provider STPI/SEZ centre Name and address of Authorised Dealer/Bank Authorized Dealer Code Section - B List of Invoices for offshore export value through datacom link Details of invoices for Royalty on software Packages/ products exported during the Period raised from _____________ to _____________ Sl SOF Name Add Cou Curr Invoi Invoice Unique Offs Type of Details of Software Packages / Products Mo Cal N TEX of ress ntry ency ce Date Internal hore softw exported de of cul o No Client of Num (DD/MM Project Exp are real atio GR/SDF Royalty agreement Clie ber /YYYY) code/Co ort Expo isat n of /PP/SOF Date details nt ntract/ valu rted ion of Ro TEX of Agreem e in Ro yalt e Dn at/ tP e O In co ev i /ED N wF o h. i F coo hnr m E ox rp t % a na dg e P Re ori yo ad lt yo f ya y lt ay m curr exports amou agreem val oun ency were nt of ent ue t declared royalt y SECTION - C DECLARATION BY EXPORTER I/ We@ hereby declare that I/we@ am/are@ the seller of the software in respect of which this declaration is made and that the particulars given above are true and that the value to be received from the buyer represents the export value contracted and declared above. I/ We@ also declare that the software has been developed and exported by using Authorised and legitimate datacom link and certified that the software described above was actually transmitted. I/ We@ undertake that I/ we@ will deliver to the authorised dealer bank named above the foreign exchange representing the full value of the software exported as above on or before........................ (i.e. within the period of realisation stipulated by RBI from time to time) in the manner specified in the Regulations made under the Foreign Exchange Management Act, 1999. I/ We @ am/ are not in the Caution List of the Reserve Bank of India. Place: Date: (Signature of Exporter) Name: Designation Space for use of the competent authority in STPI/EPZ/SEZ Certified, on the basis of above declaration by the SEZ/ STPI unit, that the software described above and the export value declared by the exporter in this form is as per the corresponding invoice/gist of invoices submitted and declared by the Unit. Place: Date: (Signature of the Designated/ Authorised Official of STPI/EPZ/SEZ ) Name: Designation @ Strike out whichever is not applicable 119Format of Softex Forms submitted in bulk Summary Sheet Section A Name and address of Exporter IEC Code. Letter of Permission (LOP) Date of LOP issued No.(STP/EHTP/SEZ/EPZ/100% EOU/DTA Unit) Name of Authorised Datacom STPI/SEZ centre Service Provider Name and address of Authorised Authorized Dealer Code Dealer/Bank Section - B List of Invoices for offshore export value through datacom link Period of invoices raised from _____________ to _____________ Sl SOF Name Add Cou Internal Type of Mode of Invoi ce Invoi ce Currency Analysis of Export Value N TEX of ress of ntry Project S/W realisati Num Date Val Trans Commis De duc Net o No Client Clie Code/ Exported on ber (DD/ ue of missi on sion tion Re nt Contract/ MM/ soft Charg (C) (D) alis Agreement YY) war e abl e No & date e (B) val Exp ue ort [A+ (A) B)(C+ D)] SECTION - C DECLARATION BY EXPORTER I/ We@ hereby declare that I/we@ am/are@ the seller of the software in respect of which this declaration is made and that the particulars given above are true and that the value to be received from the buyer represents the export value contracted and declared above. I/ We@ also declare that the software has been developed and exported by using Authorised and legitimate datacom link and certified that the software described above was actually transmitted. I/ We@ undertake that I/ we@ will deliver to the authorised dealer bank named above the foreign exchange representing the full value of the software exported as above on or before........................ (i.e. within the period of realisation stipulated by RBI from time to time) in the manner specified in the Regulations made under the Foreign Exchange Management Act, 1999. I/ We @ am/ are not in the Caution List of the Reserve Bank of India. Place: Date: (Signature of Exporter) Name: Designation Space for use of the competent authority in STPI/EPZ/SEZ Certified, on the basis of above declaration by the SEZ/ STPI unit, that the software described above and the export value declared by the exporter in this form is as per the corresponding invoice/gist of invoices submitted and declared by the Unit. Place: Date: (Signature of the Designated/ Authorised Official of STPI/EPZ/SEZ ) Name: Designation @ Strike out whichever is not applicable 12098Omitted 98 Deleted/ discontinued vide AP (DIR Series) Circular No.74 dated May 26, 2016 12199Part IX: Annex III Reporting of Long term Advance of USD 100 million & more Name and Address of the Exporter: PAN No. of the Exporter: Name, address and relationship with the overseas supplier from whom long term advance has been availed of: Company review: Nature of Number of years the Details of existing Export to total domestic sales business party has been dealing facilities with the ratio (last three years average) with the bank Bank Details of long term advance: Total amount of Total Date of Tenor Rate of Details of BG/SBLC issued, contract/orders advance to receipt of Interest, if if any placed & period be received Advance any Place: Date: Authorised Signatory: Authorised Dealer Bank: Address: Seal: 99 Omitted earlier by oversight, now inserted. 122Along with Progress Report to be submitted by Authorised Dealer Bank on utilization of Long term export Advances (For the year ended March 31, …….) Name and Address of the Exporter: Name and address of the overseas supplier from whom long term advance has been availed of: Name of the Regional Office of Reserve Bank of India to which Report is being submitted: Details of utilization of long term export advance: Total export Projected Actual Comments/ Export Details of advances export exports reasons for outstanding as export received performance performed shortfall on 31.3… advance for the year used to ended 31.3… adjust the domestic loan, if any, Details of bank guarantee / SBLC issued: Total amount for which BG Whether invoked Reasons for invocation has been issued Place: Date: Authorised Signatory: Authorised Dealer Bank: Address: Seal: 123Part IX: Annex IV100 Omitted 100 The submission of fortnightly report to RBI on balances of DDA accounts DDA accounts has since been done away with vide AP (DIR Series) circular No. 54 dated March 23, 2016 and FEM (Foreign Currency Accounts by a person Resident in India) Regulations, 2015 with effect from January 21, 2016 124Part IX: Annex V Form EFC (Application for opening foreign currency account with a bank in India or abroad by exporters) Instructions: 1. The application should be completed in duplicate and submitted through the designated branch of a bank authorized to deal in foreign exchange in India with which the foreign currency account is to be maintained/which will monitor the account, to the Office of Reserve Bank under whose jurisdiction the exporter is located. 2. Before forwarding the application to Reserve Bank, authorised dealers should properly scrutinize it to ensure that it is complete in all respects. Documentation: 3. Exporter’s declaration duly certified by his auditors, indicating export bills realized during the preceding 3 years and the export bills outstanding beyond the due date. 4. Auditor’s certificate giving country‐wise break‐up of imports made during the preceding 3 years. 5. Certified copies of a letter from overseas bank indicating terms & conditions of the loan/overdraft/line of credit facilities offered. 6. Certified copies of Reserve Bank’s approval in respect of foreign currency loans raised giving their maturity patterns. 1. Name and address of the Exporter 2. Importer‐exporter’s code number 3. Name and address of the bank/ branch with which foreign currency account is proposed to be maintained. 4. In case the account is to be maintained with a bank out‐side India, name and address of the branch of a bank in India which will monitor the transactions put through the foreign currency accounts. 5. Details of exports made Financial Total Amount Outstanding and proceeds Year exports realised at realized during the period the made (Rs.) the end of preceding 3 years and outstanding at (Rs.) the the end of the period. period (Rs.) 6. Details of imports made Calendar Financial Year Country Amount Year (Rs.) Country Amount (Rs.) during the preceding 3 years, country‐wise. 7. In case the account is proposed to be opened with a bank abroad, indicate the details of arrangements made for availing of loans/ overdrafts/lines of 125credit from the bank with which the account will be maintained. 8. Quarter-wise projections of export receipts to be credited to the account and payments in foreign exchange (item-wise) to be made from the account under various heads, during the next year. 9. Whether the applicant’s name has been/was placed on exporters’ caution list at any time. 10. Details of foreign currency loan raised by 11. Any other information that the applicant may like to provide in support of this application. Place: (Signature of Applicant/Authorised Official) …………………………………… Stamp Date: ………………………………... Name: .......................................................... Designation: ................................................. (Space for Authorised Dealer’s comments) Comments of the branch of the bank in India with which the account is proposed to be maintained or which will monitor the operations on account maintained with a bank abroad, as the case may be. Place: (Signature of Applicant/Authorised Official) …………………………………… Stamp Date: ………………………………... Name: .......................................................... Designation: ................................................. Name and Address of Authorised Dealer: ...................................................................... 1262) Imports (a) AD Category - I banks are required to submit a statement on half-yearly basis as at the end of June & December of every year, in form BEF furnishing details of import transactions, exceeding USD 100,000 in respect of which importers have defaulted in submission of appropriate document evidencing import within 6 months from the date of remittance using the online eXtensible Business Reporting Language (XBRL) system on a Bank-wide basis (https://secweb.rbi.org.in/orfsxbrl/) and monitoring & follow up is done by respective Regional Offices of RBI. The Statement should be submitted within 15 days from the close of the half-year to which the statement relates till the half year ended December 2017 and discontinued thereafter. (b) 101 W.e.f. December 26, 2023, Head Offices/International Banking Divisions of AD Category-I banks are required to submit the following returns under Bank’s CIMS portal (URL: https://sankalan.rbi.org.in) – (i) 102Return code ‘R133’ named as ‘Import of gold by EOUs, units in SEZ/EPZ and nominated agencies (HY)’ on half yearly basis (end March/ end September), showing the quantity and value of gold imported by the nominated banks/ agencies/ EOUs/ SEZs in Gem & Jewellery Sector, mode of payment-wise. (Annex VI). (ii) 103Return code ‘R132’ named as ‘Import of gold by EOUs, units in SEZ/EPZ and nominated agencies (M)’ on monthly basis showing the quantity and value of gold imports by the nominated agencies (other than the nominated banks)/ EOUs/ SEZs in Gem & Jewellery sector during the month under report as well as the cumulative position as at the end of the said month beginning from the 1st month of the Financial Year. (Annex VII). Both the returns shall be submitted, even if there is 'Nil' position, by the 10th of the following month / half year, to which it relates. 101 Inserted vide A.P.(DIR Series) Circular No. 09 dated December 22, 2023 102 Inserted vide A.P.(DIR Series) Circular No. 09 dated December 22, 2023 103 Inserted vide A.P.(DIR Series) Circular No. 09 dated December 22, 2023 127(c) AD bank should ensure one-to-one matching in case of each Merchanting Trade transaction and report defaults if any, in any leg by the traders to the concerned Regional Office of RBI, on half yearly basis in the format as given in Annex VIII, within 15 days from the close of each half year, i.e., June and December. (d) The AD Category –I bank has to obtain a copy of invoice and airway bill from the OPGSP containing the name and address of the beneficiary as evidence of import and report the transaction in R-Return(to respective regional Office of RBI on a fortnightly basis within 7 days of the end of the fortnight) under the foreign currency payment head for NOSTRO (https://www.rbi.org.in/upload/notification/pdfs/52215.pdf) & VOSTRO (https://www.rbi.org.in/upload/notification/pdfs/52216.pdf) (e) 104In terms of para C 12 (1) of Master Direction – Import of Goods and Services (as updated from time to time) AD Banks may allow extension of time in respect of clean credit for import of rough, cut and polished diamonds, for a period exceeding 180 days from the date of shipment to a maximum period of 180 days beyond the prescribed period/ due date. AD banks may submit a half yearly report of such extensions allowed customer-wise, to the respective Regional Office of the Reserve Bank. The half yearly period shall be April-September and October-March and report shall be submitted within 15 days of the end of the respective half year. (f) 105AD Category - I banks are required to submit a report of all advance remittances made without a bank guarantee or standby letter of credit for import of rough diamonds, where the amount of advance payment is equivalent to or exceeds USD 5,000,000/- (USD five million only), to the concerned Regional Office of Reserve Bank of India, in the format as given in Annex IX, within 15 calendar days of the close of each half year. 104 Inserted vide AP (DIR Series) Circular No.57 dated March 31, 2016. 105 Inserted vide AP (DIR Series) Circular No.116 dated April 1, 2014. 128Part IX Annex VI Return Code – R133 on Import of gold by EOUs, units in SEZ/EPZ and nominated agencies (HY) Name of the Bank: Mode of Quantity of Gold Value of Gold imported payment imported (in kgs) Nominated EOU/ USD million Rs million banks/ SEZ Nominated EOU/SEZ Nominated EOU/SEZ Agencies Banks / Banks/ Agencies Agencies (i) Delivery against payment basis (ii) Suppliers Credit basis (iii) Consignment basis (iv) Unfixed Price basis Note: Full details of individual transactions may be provided in cases where the aggregate value of import exceeds USD 50 million in respect of a single importer 129Part IX: Annex VII Return Code – R132 - Import of gold by EOUs, units in SEZ/EPZ and nominated agencies (M) Name of the AD bank: ...................................................................................... Data for import of the gold by non-bank nominated /other agencies for the month of ………… during the FY …………. Sr. Name of the For the current Up to the current Remarks, No. nominated month month for the FY if any agencies Quantity Value Quantity Value in in Kg in USD in Kg USD I. Import of Gold by non-bank nominated agencies 1 2 3 4 5 Sub-total II. Import of gold by EOUs in Gems & Jewellery Sector 1 2 3 Sub-total III. Import of gold by SEZs in Gems & Jewellery Sector 1 2 3 Sub- total Grand Total 130Part IX: Annex VIII Statement on default in Merchanting Trade Transactions (MTT) for the half year ended 30th June/31st December 20…. Name and Address of the Bank: Sr. AD AD Name & Name & Name & Commencem Completio Export Leg (equivalent Import Leg (equivalent Foreign No Code referenc Address of the Address of Address of ent Date n date to US Dollar) to US Dollar) Exchange ( cP oa dr et- )I e No. Me Trc rah da en rt i ng the b F uo yr ee ri g n th Se u pfo pr lie ei rg n Amount Amount Amount Amount O (Nu otl .a oy f, dif a a yn sy ) Realized outstanding paid outstanding 131106Part IX: Annex IX (Annex to A. P. (DIR Series) Circular No.116 dated- April 1, 2014) Statement of Advance Remittance without bank guarantee or standby letter of credit where the amount of advance is equivalent to or more than USD 5 million for import of Rough Diamonds for the period ended …………………….. Name of the AD Category – I Bank : AD Code (14 digit) : Sl. Name of the Name of the Amount of Advance Whether No. mining Importer Payment made document for Company Entity without BG / Standby LC evidence of and IEC No. import submitted 1 2 3 Name, Designation & Signature of the authorised official of the bank : Date : Stamp : 106 Inserted vide AP (DIR Series) Circular No.116 dated April 1, 2014. 132Part X: Guarantees The reporting requirement in case of guarantees are listed below: 107 108 109Omitted Part X: Annex I 110 Omitted 107 Deleted/discontinued vide AP (DIR Series) Circular No.1 dated July 07, 2016 prior to deletion it read as “1) Invocation of Bank Guarantee/ Standby Letter of Credit for import of service: In terms of A.P.(DIR Series) Circular No. 13 dated November 17, 2006 read with A.P. (DIR Series) circular No. 11 dated October 5, 2009, in case of invocation of the guarantee issued for import of services, the Authorised Dealer is required to submit to the Chief General Manager-in-Charge, Foreign Exchange Department, Foreign Investments Division (EPD), Reserve Bank of India, Central Office, Mumbai- 400001 a report on the circumstances leading to the invocation of the guarantee relating to import of services” 108 Numbering updated post issuance of AP (DIR Series) Circular No.1 dated July 07, 2016 109 Deleted/discontinued vide AP (DIR Series) Circular No. 05 dated June 09, 2022. Prior to deletion it read as “Statement for reporting of non-resident guarantees issued and invoked in respect of fund and non-fund based facilities between two persons resident in India (Annex I): A non-resident can guarantee fund and non-fund based facilities availed by one resident from another. A reporting format has been prescribed to capture such guarantees issued and invoked. Authorized Dealer Category-I banks are required to furnish such details by all its branches, in a consolidated statement, during the quarter, as per the format in Annex to the Chief General Manager, Foreign Exchange Department, ECB Division, Reserve Bank of India, Central Office Building, 11th floor, Fort, Mumbai – 400 001 (and in MS-Excel file through email) so as to reach the Department not later than 10th day of the following month.” 110 Deleted/discontinued vide AP (DIR) Circular No. 05 dated June 09, 2022. 133Part XI: Compounding: The compounding of contraventions under Foreign Exchange Management Act (FEMA), 1999 is a voluntary process by which an applicant can seek compounding of an admitted contravention of any provision of FEMA, 1999 under Section 13(1) of the FEMA, 1999. The Forms prescribed are given below: 1) The format of the application (Annex-I). 2) The details of irregularities whether relating to Foreign Direct Investment, External Commercial Borrowings, Overseas Direct Investment and Branch Office/ Liaison Office, as applicable (Annex-II). 3) Undertaking that the applicant is not under investigation of any agency such as DOE, CBI, etc. in order to complete the compounding process within the time frame (Annex-III) 4) Mandate and details of their bank account (Annex IV): In case the application has to be returned for any reason, the application fees of Rs.5000/- received along with the application fees is also returned. To expedite the refund of compounding fees in such cases, it has been decided to credit the same to the applicant’s account through NEFT requiring the obtaining of a mandate. 134Part XI: Annex I Format of Application Form (See Rule 4 or 5) (To be filled in duplicate and shall be accompanied by certified copy of the Memorandum issued) 1. Name of the applicant (in BLOCK LETTERS) 2. Full address of the applicant (including Phone and Fax Number and email id) 3. Whether the applicant is resident in India or resident outside India [Please refer to Section 2(v) of the Act] 4. Name of the Adjudicating Authority before whom the case is pending 5. Nature of the contravention [according to sub-section (1) of Section 13] 6. Brief facts of the case 7. Details of fee for application of compounding 8. Any other information relevant to the case I/We declare that the particulars given above are true and correct to the best of my/our knowledge and belief and that I/We am/are willing to accept any direction/order of the Compounding Authority in connection with compounding of my/our case. Dated: Name: (Signature of the Applicant) 135Part XI: Annex II FDI Details to be furnished along with application for compounding of contravention relating to Foreign Direct Investment in India • Name of the applicant • Date of incorporation • Income-tax PAN • Nature of activities under taken (Please give NIC code – 1987 / 2008) • Brief particulars about the foreign investor • Details of foreign inward remittances received by Applicant Company from date of incorporation till date Table A Sl.No. Name of Total Date of Reported to Delay if Remitter Amount Receipt RBI on* any (INR) Total * date of reporting to RBI and not AD Table B Name Date of Number Amount for Date of Delay of allotment of shares which shares reporting if any Investor of shares allotted allotted to RBI* Total * date of reporting to RBI and not AD Table C Sl. Name Total Date of Excess Date of Amount RBI No. of Amount Receipt share refund of in forex approval Remitter (INR) application share letter money application and date money Total 136Table D Authorised Capital Sl. Date Authorised With effect Date of Board Date of filing No. Capital from meeting with ROC A= B+C Please give supporting documents Table A- Copies of FIRC with date stamp of receipt at RBI Table B- Copies of FCGPR with date stamp of receipt at RBI Table C – letter seeking refund/ allotment of shares- approval letter from RBI A2 form • Copies of Balance Sheet during the period of receipt of share application money • and allotment of shares • Nature of contravention and reasons for the contravention ECB Details to be furnished along with application for compounding of contravention relating to External Commercial Borrowing • Name of the applicant • Date of incorporation • Income-tax PAN • Nature of activities undertaken (Please give NIC code – 1987) • Brief particulars about the foreign lender • Is the applicant an eligible borrower? • Is the lender eligible lender? • Is the lender an equity holder? • What is the level of his holding at the time of loan agreement? • Details of ECB • Date of Loan agreement • Amount in Foreign Currency and Indian Rupee • Rate of interest • Period of loan • Repayment particulars Date of draw Amount in Foreign Amount in down Currency INR • Details of draw down • Details of LRN Number- application and receipt 137• Details of ECB 2 returns submitted; Period of return: Date of submission • Details of Utilization of ECB in Foreign Currency and Indian Rupee • Nature of contravention and reasons for the contravention • All supporting documents may be submitted ODI Details to be furnished along with application for compounding of contravention relating to Overseas Investment • Name of the applicant • Date of incorporation • Income-tax PAN • Nature of activities undertaken (Please give NIC code – 1987) • Name of Overseas entity • Date of incorporation of overseas entity • Nature of activities undertaken by overseas entity • Nature of entity- WOS/JV • Details of remittance sent- Date of remittance; Amount in FCY and in INR • Details of other financial Commitment • Details of UIN applied and received • Date of receipt of share certificate • Approval of other regulators if required • Details of APRs submitted: For the period ended; date of submission • Nature of contravention and reasons for the contravention • All supporting documents may be submitted Branch Office / Liaison Office Details to be furnished along with application for compounding of contravention relating to Branch/Liaison Office in India • Name of the applicant • Date of incorporation • Income-tax PAN • Nature of activities undertaken (Please give NIC code – 1987) • Date of approval for opening of Liaison Office/ Branch Office • Validity period of the approval • Income and expenditure of the LO/BO • Dates of submission of Annual activity Certificates • Nature of contravention and reasons for the contravention • All supporting documents may be submitted 138Part XI: Annex III UNDERTAKING (On the letterhead of the applicant ) *I/We _________________ (Name of the applicant) hereby confirm/declare that I/we am/are not under any enquiry/investigation/adjudication by any agency such as Directorate of Enforcement, CBI etc as on the date of this application. I/We further undertake to inform to the Compounding Authority / Reserve Bank of India immediately, in writing, if any enquiry/investigation/adjudication proceedings are initiated by any agency against me/us at any time hereafter but on or before the date of issuance of the compounding order in respect of the compounding application filed by me/us.’ OR *I/We _________________ (Name of the applicant) hereby confirm/declare that I/we am/are or was/were under enquiry/investigation/adjudication by any agency such as Directorate of Enforcement, CBI etc. and the details are given in the Annex. I/We further undertake and confirm that no appeal has been filed by me/us under section 17 or section 19 of FEMA, 1999. (* Strike out one) Signature of the authorised signatory 139Part XI: Annex IV ELECTRONIC CLEARING SERVICE (ECS) MANDATE FORM 1. Name of the Party (Beneficiary) - 2. PAN 3. Particulars of the Bank Account - A. Name of the Bank - B. Name of the Branch - Address: Telephone No: C. Type of Account - SAVINGS / CURRENT D. Account No. - (as appearing on the cheque book issued by the Bank) E. The 9 Digit MICR Code Number - (as appearing on the cheque book issued by the Bank) F. IFSC Code - (as appearing on the cheque book issued by the Bank) 4. Checklist for Attachments: Photocopy of PAN Card Photocopy of a cancelled blank cheque 5. I/We hereby declare that the particulars given above are correct and complete. If the transaction is delayed or not effected at all for reasons of incomplete or incorrect information, I/We would not hold the user institution responsible. Signature of the Authorised Signatory (Name of the Authorised Signatory) Official Stamp Date: Place: 140Part XII: Licensing of NBFCs as AD Category-II In terms of DNBR notification DNBR (PD) CC.No. 098/03/10/001 dated April 16, 2019, Systemically Important Non-Deposit taking Non-Banking Financial Company – Investment and Credit Companies (NDSI-NBFC-ICCs) fulfilling certain conditions have now been made eligible for an Authorised Dealer Category-II licence under section 10(1) of FEMA 1999. The NBFCs fulfilling the eligibility conditions and desirous of undertaking activities permitted to an AD Category-II under FEMA, may make an application in the prescribed form (Part XII-Annex) and submit the same to the respective Regional Office of the Foreign Exchange Department of the Reserve Bank under whose jurisdiction the registered office of the applicant NBFC falls. 141Part XII: Annex Application Form to be submitted by eligible NBFCs to Regional Office of the Reserve Bank for licensing as an Authorised Dealer Category-II under Section 10(1) of FEMA 1999. 1. Name (in full) of the applicant NBFC 2. Registered Address (in full) 3. Regional Office of the Reserve Bank where the applicant NBFC is registered 4. a) Date of establishment of the company b) Names and addresses of the company directors c) Name, designation and address of the Principal Officer nominated in terms of PMLA Rules 5. Whether the applicant had applied earlier for any licence under FEMA 1999. If so, the particulars thereof 6. Details of sister / associated concerns operating in the financial sector 7. Board resolution for undertaking activities permitted to an AD Category II under FEMA along with a brief write up detailing the foreign exchange business proposed to be undertaken as AD Category II 8. Details of the NBFC’s internal control mechanism, audit and risk management system proposed to be put in place in respect of foreign exchange operations 9. Address of location/s where the applicant proposes to conduct business as an AD Category-II 10. Copy of the NBFC’s Certificate of Registration (CoR) 11. Copy of Memorandum of Association (MoA) and Articles of Association (AoA) together with a letter indicating the clause in MoA/AoA which provides for taking up business as an AD Category-II 12. Document from rating agency certifying ‘investment grade rating’ of the NBFC 13. Board approved policy on risk management and handling customer grievances 14. Confidential report from the applicant's banks in CIR format 15. Copy of the latest audited Balance Sheet and Profit & Loss Account for the last three years along with a certificate from the Statutory Auditor certifying the NBFC’s Net Owned Funds (NOF) as on the date of application. 16. A declaration to the effect that no proceedings have been initiated by / are pending with the Directorate of Enforcement (DoE) / Directorate of Revenue Intelligence (DRI)/ or any other law enforcing authorities, against the applicant company or its directors and that no criminal cases are initiated / pending against the applicant company or its directors. 14217. A declaration to the effect that proper policy framework on KYC / AML / CFT, in accordance with the guidelines issued by Reserve Bank of India, Department of Banking Regulation, Central Office as referred to in their ‘Master Direction – Know Your Customer (KYC) Direction, 2016’ and other instructions in this regard so far and from time to time in future, mutatis mutandis, applicable to Authorised Persons under FEMA, shall be put in place on obtaining Reserve Bank’s approval, and before commencement of operations 18. Undertaking to post competent staff to handle the business activities permitted to an AD Category II 19. Any other particulars which the applicant may wish to state 143111Part XIII: Late Submission Fee (LSF) Matrix for Reporting Delays, wherever applicable 1. A person who is liable to pay LSF as per the provisions under FEMA 1999, shall pay such LSF as per the following matrix: Sr. LSF No. Type of Reporting delays Amount (INR) 1 Form ODI Part-II/ APR, FCGPR (B), FLA Returns, Form OPI, evidence of investment or any other 7500 return which does not capture flows or any other periodical reporting 2 FC-GPR, FCTRS, Form ESOP, Form LLP(I), Form LLP(II), Form CN, Form DI, Form InVi, Form ODI- Part I, Form ODI-Part III, Form FC, Form ECB, Form [7500 + ECB-2, Revised Form ECB or any other return (0.025% × which captures flows or returns which capture A × n)] reporting of non-fund transactions or any other transactional reporting Notes: a) “n” is the number of years of delay in submission rounded-upwards to the nearest month and expressed up to 2 decimal points. b) “A” is the amount involved in the delayed reporting. c) LSF amount is per return. However, for any number of Form ECB-2 returns, delayed submission for each LRN will be treated as one instance for the fixed component. Further, ‘A’ for any ECB-2 return will be the gross inflow or outflow (including interest and other charges), whichever is more. d) Maximum LSF amount will be limited to 100 per cent of ‘A’ and will be rounded upwards to the nearest hundred. e) Where an advice has been issued for payment of LSF and such LSF is not paid within 30 days, such advice shall be considered as null and void and any LSF received beyond this period shall not be accepted. If the applicant subsequently approaches for payment of LSF for the same delayed reporting, the date of receipt of such application shall be treated as the reference date for the purpose of calculation of “n”. 111 Inserted vide A.P.(DIR Series) Circular No. 16 dated September 30, 2022 which introduced a uniform LSF matrix. 144f) The facility for opting for LSF shall be available up to three years from the due date of reporting/ submission. The option of LSF shall also be available for delayed reporting/submissions under the Notification No. FEMA 120/2004-RB and earlier corresponding regulations, up to three years from the date of notification of Foreign Exchange Management (Overseas Investment) Regulations, 2022. g) In case a person responsible for any submission or filing under the provisions of FEMA, neither makes such submission/filing within the specified time nor makes such submission/filing along with LSF, such person shall be liable for penal action under the provisions of FEMA, 1999. 2. In case the return (whether in physical or electronic form) is incomplete then the delay will continue till such time the return is received complete in all respects. 3. The applicant cannot claim a refund in any manner for the amount already deposited as LSF. 4. The AD banks are required to ensure that there is no delay at their end in forwarding the completed application to the Reserve Bank. Any such delays will render the AD bank for action as laid down in section 11(3) of the Foreign Exchange Management Act, 1999. 5. The LSF shall be paid by way of a demand draft drawn in favour of “Reserve Bank of India” and i. payable at Mumbai and sent through the designated Authorised Dealer Category-I bank (AD bank) to the Director, External Commercial Borrowings Division, Department of Statistics and Information Management, Reserve Bank of India, C-9, Bandra-Kurla Complex, Bandra (East), Mumbai-400 051, accompanying the requisite return(s) for External Commercial Borrowings related transactions. ii. payable at the Regional Office concerned of the Reserve Bank for Foreign Investment related transactions by way of Demand Draft or NEFT or RTGS. The detailed instructions regarding the same have been provided in the User Manual for FIRMS available on https://firms.rbi.org.in.112 iii. payable at the Regional Office concerned of the Reserve Bank in accordance with the UIN mapping as given below for Overseas Investment related transactions: Sr.No UIN with prefix UIN mapped to 1. AH RO Ahmedabad 2. BG RO Bengaluru 3. BL or BY or PJ RO Mumbai 4. BN or CA or GA or GH RO Kolkata 112 Inserted with effect from April 10, 2023. 1455. CG or JM or JR or KA or ND or PT or WR RO New Delhi 6. HY RO Hyderabad 7. KO or MA RO Chennai 146