CS Lalit Rajput
"Discontinuation of Returns Reports under FEMA, 1999"
Overview
Reserve Bank of India (RBI) vide notification / Circular No. RBI/2020-21/66 A.P. (DIR Series) Circular No. 05 dated 13th November 2020, has published Discontinuation of Returns/ Reports under Foreign Exchange Management Act, 1999” in the exercise of the powers conferred under sections Section 10(4) and 11(2) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.
The Circular is issued to :
All Authorised Persons
Aim and Vision of this Circular:
- to improve the ease of doing business and
- reduce the cost of compliance,
The existing forms and reports prescribed under FEMA, 1999, were reviewed by the Reserve Bank. Accordingly, it has been decided to discontinue the 17 returns/reports as listed in Annexure A to this Circular as mentioned below with immediate effect.
Provisions of this Circular
The attention of Authorised Persons is invited to the Master Direction - Reporting under Foreign Exchange Management Act, 1999 dated January 01, 2016 (click here), as amended from time to time, and other reporting related instructions issued by the Reserve Bank of India. AD banks may bring the contents of this circular to the notice of their constituents.
List of Discontinued Reports Annexure A
|
Sl No. |
Name of Report |
Reporting Entity |
Frequency |
|
1 |
Category-wise transaction where the amount exceeds USD 5000 per transaction |
AD Category-II |
Monthly |
|
2 |
Category-wise, transaction-wise statement where the amount exceeds USD 25,000 per transaction |
AD Category- II |
Monthly |
|
3 |
Statement of Purchase transactions of USD 10,000 and above (including transactions of their franchisees) |
FFMCs and AD Category- II |
Monthly |
|
4 |
Extension of Liaison Offices (LOs) |
AD Category-I banks |
As and when the extension is granted |
|
5 |
Extension of Project Offices (POs) |
AD Category-I banks |
As and when the extension is granted |
|
6 |
FII/FPI daily: Daily inflow/outflow of a foreign fund on account of investment by FPIs |
AD banks |
Daily |
|
7 |
FII/FPI Return (Monthly): Data relating to actual inflow /outflow of remittances on account of investments by Foreign Institutional Investors (FIIs) in the Indian Capital market |
AD Category-I banks |
Monthly |
|
8 |
FVCI reporting: Inflows/outflows of remittances on account of investments by Foreign Venture Capital Investor (FVCIs) and Market value of Investments made by FVCIs |
AD Category-I banks/Custodian banks |
Monthly |
|
9 |
Reporting of Inflow/Outflow details in respect of Mutual Fund by Asset Management Companies |
Asset Management Companies |
Quarterly |
|
10 |
Market value of FII Investment in India on a fortnightly basis |
AD Category-I banks |
Fortnightly |
|
11 |
Market value of FII Investment in India on a monthly basis |
AD Category-I banks |
Monthly |
|
12 |
FII holdings as a percentage of floating stock |
AD Category-I banks |
Monthly |
|
13 |
Form DRR for Issue/transfer of sponsored/unsponsored Depository Receipts (DRs)-Hardcopy@ |
Custodian |
At the time of issue/transfer of depository receipts |
|
14 |
ADR/GDR Movement Report - two-way fungibility |
AD Category-I banks |
Monthly |
|
15 |
Repatriation of Sales proceeds of underlying shares represented by FCCBs/GDRs/ ADRs |
Custodian |
Monthly |
|
16 |
GDR/ADR underlying shares issued, redeposited, and released monthly reporting |
Custodian |
Monthly |
|
17 |
Monitoring of disinvestments by Overseas Corporate Bodies |
AD banks |
Monthly |
|
Please note that it is only the hardcopy filing of form DRR that has been discontinued. The domestic custodian may continue to report the form DRR on FIRMS application in terms of Regulation 4 (5) of FEM (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019. |
|||
Link: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11994&Mode=0
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error, or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event, the author shall be liable for any direct, indirect, special, or incidental damage resulting from or arising out of or in connection with the use of this information.
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