To gain knowledge on various reports and forms prescribed by RBI for transactions undertaken under the ambit of FEMA. In this Webinar we shall look into various reports and forms which are to be submitted by or through Authorised persons/ dealers in specific cases like Foreign investment, Overseas Direct Investment, External Commercial Borrowings.

1. Reporting under FEMA
CA. Divakar Vijayasarathy

2. Credits and Acknowledgments
Harish Kumar R
Thirumal V
CA Jugal Gala

3. Legends used in the Presentation
AAC Annual Activity Certificate
AD Authorised Dealer
AML Anti-Money Laundering
BO Branch Office
BTQ Basic Travel Quota
CY Current Year
DG Director General
ECB External Commercial Borrowing
EDPMS Export Data Processing and Monitoring System
ESOP Employees’ Stock Option
FDI Foreign Direct Investment
FEMA Foreign Exchange Management Act, 1999
FETERS
Foreign Exchange Transactions Electronic
Reporting System
FFMC Fully Fledged Money Changer
FPI Foreign Portfolio Investor
FVCI Foreign Venture Capital Investor
HO Head Office
IPO Initial Public Offer
IT Income Tax
KYC Know Your Customer
LO Liasion Office
MOA Memorandum of Association
NBFC Non-Banking Financial Company
ODI Overseas Direct Investment
OPGSP Online Payment Gateway Service Providers
PO Project Office
PY Previous Year
QIP Qualified Institutional Placement
RBI Reserve Bank of India
RMC Restricted Money Changing

4. Presentation Schema
Introduction Overview
Money Changing
Activity
Money Transfer
Service Scheme
Rupee Drawing
Arrangements
Liberalised
Remittance
Scheme
Establishment of
Branch Office /
Liaison Office /
Project Office
Foreign
Investment
Delays in
reporting
External
Commercial
Borrowing
Non-resident
Foreign Accounts
Overseas Direct
Investment
Trade: Export and
Import
Guarantees Compounding
Licensing of
NBFCs as AD
Category-II

5. Introduction
The various reports/ forms required to be submitted under FEMA are consolidated under the Master
Direction - Reporting under Foreign Exchange Management Act, 1999
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
RBI, therefore, has prescribed various reports and forms to be submitted by and through Authorised
Persons/ Authorised Dealer Category – I Banks/ Authorised Banks
FEMA is administered through the authorised persons and is based on the declarations and averments
made to them by persons while undertaking the transactions

6. Overview
Remittance
Facilities
Reporting for the following aspects under FEMA have been prescribed under this Master Direction
Money Changing
Activity
Money Transfer
Service Scheme
Rupee Drawing
Arrangements
Liberalised
Remittance Scheme
Liasion Office/
Branch Office/
Project Office
Foreign
Investment
External Commercial
Borrowing
Non-Resident Foreign
Accounts
Immovable Property
Overseas Direct
Investment
Trade:
Exports and
Imports
Guarantees
Compounding
Licensing
of NBFCs

7. Remittance Facilities
Money Changing Activity Money Transfer Service Scheme Rupee Drawing Arrangements

8. Authorised Money Changers (AMC) are entities that performs money changing activity as prescribed by RBI
AD Category – I Banks ADs Category – IIFull Fledged Money Changers (FFMC)
Authorised Money Changers can be
Reporting
Prescribed Application form for FFMC License under FEMA
• AMCs entering into Franchisee (agency) agreements for Restricted Money Changing i.e.
conversion of foreign currency notes, coins or travellers' cheques into Indian Rupees
• Should obtain information from the franchisee in Form RMC-F
Prescribed Registers in respect of the money-changing transactions should be maintained by AMCs
Money Changing Activity

9. Prescribed Registers for AMCs
Daily Summary and Balance Book (Foreign currency notes / coins/Travelers’ cheques)
Register of purchases of foreign currencies from the public
Register of purchases of foreign currency notes / coins from ADs and authorized money changers
Register of sales of foreign currency notes / coins and foreign currency travelers’ cheques to the public
Register of sales of foreign currency notes / coins to authorised dealers/FFMCs/overseas banks
Register of travellers' cheques surrendered to ADs / authorized money changers / exported
Summary statement of purchases and sales of foreign currency notes during the month
Monthly Statement of Purchase transactions of USD 10,000 and above
Quarterly Statement showing summation of Foreign Currency Account opened in India out of export proceeds of
Foreign Currency Notes/ encashed Travellers' Cheques
Annual Statement of the amount of foreign currency written off during a financial year
Proforma giving Information about New Directors/ Change of Directors of the FFMC / non-bank AD Category – II

10. • 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
Indian Agents would disburse funds to beneficiaries in India from the money received from Overseas Principals
at ongoing exchange rates
Reporting requirements are as follows:
List of Sub Agents, Overseas Principal-Indian Agent wise
List of additional locations of Indian Agent if any
Quarterly statement of the quantum of remittances received
Half-yearly statement of the collateral held as at the end of June and December every year
Money Transfer Service Scheme
MTSS is a way of transferring personal remittances from abroad to beneficiaries in India

11. Under RDAs, cross-border inward remittances are received in India through Exchange Houses situated in Gulf countries,
Hong Kong, Singapore, Malaysia and all other countries which are FATF compliant (North Korea and Iran are non-compliant)
Reporting requirements are as follows:
Application by AD Category – I to RBI when entering into RDA for the first time with non-residents for opening and
maintaining in India the Rupee Vostro accounts
Monthly
Exchange House-wise statement to ascertain whether funds are adequate to cover estimated
pipeline debits
Information regarding Exchange House’s account held at overseas branches of Indian banks
Information about operations in the foreign currency vostro account of the Exchange House in
Quarterly Total remittances received every quarter is required to be submitted using XBRL
Half-yearly
Showing position of Rupee/ foreign currency vostro accounts of Exchange Houses which are to
be closed/ are in the process of closure
Annual Review
AD Category-I banks should submit the details of vostro accounts of the Exchange Houses maintained by
them, to the respective Regional Office(RO) of the Foreign Exchange Department (FED) of the RBI
Rupee Drawing Arrangements

12. Under LRS, 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 FEMA
Reporting Requirements are as follows:
AD Category – I Banks
• Required to furnish the information on remittances made under the LRS
• on monthly basis on or before 5th of the following month to which it relates to
Online Returns Filing System
• Where no data to furnish – nil figures to upload
• Required to furnish the transaction wise information under LRS on a daily (T+1)
basis i.e. by the close of business of the next working day
• Where no data to furnish – nil figures to upload
Transactions relating to LRS are required to be reported in Foreign Exchange Transactions Electronic Reporting
System (FETERS) to Department of Statistics and Information Management under respective FETERS purpose codes
Liberalised Remittance Scheme

13. Establishment of Branch Office / Liaison Office / Project Office
or any other place of business in India by foreign entities
Applications from foreign companies for establishing BO/ LO/ PO in
India are considered by the AD Category-I banks as per RBI guidelines
The Reporting requirements are as follows:
Annual Activity Certificate (AAC)
AAC as at the end of March 31 along with the audited financial statements are required to be submitted to the
designated AD Category – I bank and a copy of the same to the DG of IT (International Taxation) on or before September
30 of every year – if accounts are finalised other than March 31, within 6 months from the balance sheet date
AAC from a Chartered Accountant Showing project status and certificate that the accounts of the project office have been
audited and the activities undertaken are in conformity with permission given by RBI
AD Category-I bank shall send a consolidated list of all the BOs/LOs/ POs opened and closed by them during a month, by
the 5th of the succeeding month
Extension of LOs granted by the AD Category-I banks must be intimated
Extension of PO has to be reported by the AD Category-I bank to the Central Office Cell

14. Condition for Entities from Specified Countries
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
to the Director General of Police (DGP) of the state concerned in which the BO/LO/PO has
established its office
should register with the state police authorities and are required to submit an annual report within
five working days of the BO/LO/PO becoming functional
Entities from Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong, Macau or Pakistan which
are setting up a BO/LO/PO in India

15. Foreign Direct Investment

16. Foreign Investment (FDI)
The reporting formalities for foreign investment are given below:
Reporting for capital instruments
The actual inflows on account of issue of capital instruments shall be reported by the
AD branch in the normal course
Reporting Inflows
Foreign Currency – Gross
Provisional Return
An Indian company issuing capital instruments to a non-resident, and where such issue is
reckoned as FDI under FEMA, shall report such issue in Form FC-GPR in the Single Master
Form (SMF) not later than 30 days from the date of issue of the capital instruments
Allotment of shares under IPO or Qualified Institutional
Placement under the applicable SEBI RegulationsItems not required to be reported
Annual Return on Foreign
Liabilities and Assets
An Indian company which has received FDI or an LLP which has received
investment by way of capital contribution in the PY including the CY, shall submit
form FLA to the Reserve Bank on or before the 15th day of July of each year
Reporting of issue of capital instruments
Foreign Investment in India is regulated in by FEM (Transfer or Issue of a Security by a Person
resident Outside India) Regulations, 2017. The regulation prescribes the modes of investments,
manner of receipt of funds, pricing guidelines and reporting etc. involved in foreign investment.

17. FDI - Reporting for Transfer of shares
Actual inflows and outflows on account of transfer of shares shall be reported by AD Branch in the normal course
Foreign Currency-Transfer of Shares (Form FC-TRS) is required to be filed:
Transfer of capital instruments between:
•A non-resident holding capital instruments in an Indian company on a repatriable basis and non-resident holding capital
instruments on a non-repatriable basis - (onus on person holding capital instruments on non-repatriable basis)
•A non-resident holding capital instruments in an Indian company on a repatriable basis and a person resident in India (onus
on resident transferor or transferee)
Transfer of capital instruments between a non-resident holding capital instruments on a non-repatriable
basis and person resident in India
No reporting
Sale of capital instruments on a recognized stock exchange by a non-resident
Transfer of capital instruments with payment on deferred basis, shall be reported in to the AD bank on receipt of every
tranche of payment (Onus on resident transferor or resident transferee)
Transfer of ‘participating interest/ rights’ in oil fields
Indian company buying back shares in a scheme of merger/ de-merger/ amalgamation of Indian companies approved by
NCLT/ competent authority
Form FCTRS has to be filed with the AD bank within sixty days of transfer of capital instruments or receipt/ remittance of
funds, whichever is earlier

18. FDI – Other Reporting
Know Your
Customer
The sale consideration in respect of capital instruments purchased by a non-resident, remitted
into India through normal banking channels, is subject to a KYC check
Reporting of conversion of ECB into equity
In case of full conversion of ECB into equity, the company shall report the conversion in Form FC-GPR as well as in Form ECB-2
(only once with clear indication “wholly converted to equity”)
In case of partial conversion of ECB, the company is required to report the converted portion in Form FC-GPR as well as in
Form ECB-2 (only once) clearly differentiating the converted portion from the non-converted portion
Reporting of ESOPs and sweat equity shares
An Indian company issuing 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
ESOP within 30 days from the date of issue of ESOPs
Reporting of ADR/GDR Issues
The domestic custodian shall report the issue/ transfer of sponsored/ unsponsored
depository receipts in Form DRR within 30 days of close of the issue/ program

19. FDI – Other Reporting
Reporting requirements of Limited Liability Partnerships
Form FDI- LLP (I)
Within 30 days of receiving amount of consideration by LLP for capital contribution
and acquisition of profit shares
Form FDI- LLP (II)
Along with:
• Copies of the FIRCs evidencing the receipt of the remittance
• A KYC report in respect of the foreign investor
LLP 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
Reporting of issue or transfer of Convertible Notes
Start-up company issuing Convertible Notes to a non-resident shall file within 30 days of issue
Form CN
Transfer of Convertible Notes of a start-up company by way of sale between a person resident in India and a
non-resident shall be reported by the transferor/transferee, resident in India, within 30 days of such transfer

20. FDI – Other Reporting
Reporting of foreign portfolio investment
Investment other than by NRIs/ OCIs
Reporting Form LEC (FII)
The AD banks have to ensure that the FPIs registered with SEBI who are investing as a Foreign Portfolio Investment
are reported along with periodic reconciliation of data submitted
Investment by NRIs/ OCI
Designated link office of the AD bank shall furnish to the RBI, a report on a daily basis, for their entire bank,
investments which is considered as Foreign Portfolio Investment and ensure periodic reconciliation
Downstream Investment
An Indian entity or an investment vehicle making downstream investment in another Indian
entity which is considered as indirect foreign investment for the investee company - Form DI
shall be filed within 30 days from the date of allotment of capital instruments
Investment by Foreign Venture Capital Investor
• Investment in capital instruments by FVCIs s required to be reported in Form FC-GPR and
• Transfer of capital instruments between an FVCI and a person resident in India is required to be filed in Form FC-TRS

21. FDI - Delays in Reporting
The person/ entity responsible for filing the reports shall be liable for
payment of late submission fee for any delays in reporting
Calculation and Payment of LSF
Amount involved in reporting
(in Rs.)
Late Submission Fee (LSF) as % of amount
involved *
Maximum amount of LSF
applicable
Up to 10 million 0.05 percent
Rs.1 million or 300% of the
amount involved, whichever is
lower
More than 10 million 0.15 percent
Rs.10 million or 300% of the
amount involved, whichever is
lower
* The % of LSF will be doubled every twelve months
The floor (minimum applicable amount) for LSF will be Rs 100
The period of contravention shall be considered proportionately
No refund of amount deposited as LSF

22. External Commercial Borrowings, Non-resident Foreign
Accounts and Immovable Property

23. External Commercial Borrowing
ECB can be accessed under two routes, viz., (i) Automatic Route (ii) Approval Route
The reporting requirements are as follows:
Application for raising ECB under the Approval Route and for allotment of Loan Registration
Number -Form ECB
Reporting of actual transactions of ECB - ECB 2 Return
Form for reporting of details of Trade Credit - Form TC
Statement on Guarantee/ Letter of Undertaking/ Letter of Comfort issued by AD banks in respect of Trade Credit

24. Non-resident Foreign Accounts
Monthly statement on remittances made from NRO Accounts
AD - Category I banks are required to furnish the statement in the requisite format to General
Manager-in-Charge of Foreign Investments Division of RBI
The accounts opened by an AD or an authorised bank in respect of individual/s of Bangladesh nationality should
be reported by it to its HO and the HO of such AD/ authorised bank should forward a quarterly report containing
the details of the individuals to the Ministry of Home Affairs (Foreigners Division)
Return on non-resident deposits
Authorised Banks maintaining non-resident deposits are required to
submit detailed monthly data on non-resident deposits to the RBI

25. Immovable Property
not later than 90 days from the date of such acquisition.
is required to file with the RBI, a declaration in Form IPI
acquires any immovable property in India, which is necessary for or incidental to carrying on such activity,
in accordance with the FEMA for carrying on in India any activity, excluding a LO, and
A non-resident who has established in India, a branch, office or other place of business

26. Overseas Direct Investment and Trade – Exports and Imports

27. Overseas Direct Investment
The reporting formalities are given below:
An Indian Party and a Resident Individual making an overseas investment is required to submit Form ODI
An annual return on Foreign Liabilities and Assets is required to be submitted directly by all the Indian
companies which have made FDI abroad, which shall be validated and sent by e-mail, by July 15 every year
Reporting of the Overseas Investment by Venture Capital Fund / Alternate Investment Fund
Monthly reporting of Portfolio Investment and Overseas Investment by Mutual Fund
Annual Statement of shares allotted to Indian employees/ Directors under ESOP Schemes
Online Reporting of Form ODI
• A concept of AD Maker, AD Checker and AD Authorizer has been introduced in the online application process.
• The AD Maker shall initiate the transaction and submit to the AD Checker for verification of the transaction
before submission to Reserve Bank.
• The AD Authorizer shall have the authority to ratify these ODI transaction
Annual Statement of shares repurchased by foreign companies from Indian employees/ Directors under ESOP Schemes

28. Structure of Form ODI
Part I – Application for allotment of Unique Identification Number (UIN) and reporting
of Remittances / Transactions
Part II - Annual Performance Report (APR)
Part III – Report on Disinvestment
Section A – Details of the Indian Party (IP) / Resident Individual (RI).
Section B – Capital Structure and other details of JV/ WOS/ Step Down Subsidiary.
Section C - Details of Transaction/ Remittance/ Financial Commitment of IP/ RI.
Section D – Declaration by the IP/ RI.
Section E – Certificate by the statutory auditors of the IP/ self-certification by RI

29. Trade – Exports
EDF Form Export Declaration Form (EDF) is used to declare export of goods from Non-EDI ports
Softex form
All software exporters are required to file single as well as bulk SOFTEX form in excel format
to the competent authority for certification
Advance Payments against
Long term Exports
Reporting of Long term Advance of USD 100 million & more
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
Factoring of export receivables
on a non-recourse basis
After factoring, the Export Factor may close the export bills and report the
same in the Export Data Processing and Monitoring System (EDPMS)
Follow-up of Overdue Bills All export transaction for shipping documents should be reported in EDPMS
AD banks should report write off of export bills through EDPMS to the RBI
Application for opening foreign currency account with a bank in India or abroad by exporters in Form EFC
AD Category-I banks entering into an arrangement/s receipt/payment of/for export proceeds/imports by entering
into standing arrangements with the OPGSPs should report the details of each such arrangement to RBI

30. Trade - Imports
Half-yearly
Furnishing details of import transactions in Form BEF, 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 XBRL
Statement on Import of Gold – quantity and value (Reporting even if nil)
Monthly-basis
Statement showing the quantity and value of gold imports during the month under
report as well as the cumulative position as at the end of the said month
Statement on default in Merchanting Trade Transactions (reporting even if nil)
The AD Category –I bank has to obtain a copy of invoice and airway bill from the OPGSP to report the transaction in R-Return

31. Guarantees, Compounding and Licensing

32. Guarantees
The reporting requirement in case of guarantees are listed below :
Statement for reporting of non-resident guarantees issued and invoked between two persons resident in India
• A non-resident can guarantee fund and non-fund based facilities availed by one resident
from another
• AD Category-I banks are required to quarterly furnish such details by all its branches, in a
consolidated statement, during the quarter

33. Compounding
Pre-requisites
Filing an Application form
The details of irregularities whether relating to Foreign Direct Investment, External
Commercial Borrowings, Overseas Direct Investment and Branch Office/ Liaison Office
Undertaking that the applicant is not under investigation of any agency such as CBI in order
to complete the compounding process within the time frame
The compounding of contraventions is a voluntary process by which an applicant can seek
compounding of an admitted contravention of any provision of FEMA
Details of their bank account

34. Licensing of NBFCs as AD Category-II
Systemically Important Non-Deposit taking Non-Banking Financial Company – Investment and
Credit Companies fulfilling certain conditions, shall become eligible for license as AD Category – II
The eligible NBFCs shall make an application Form to be submitted to Regional Office of RBI for acquiring the license
Conditions
• NBFCs offering such services shall have a ‘minimum investment grade rating’.
• NBFCs offering such services shall put in place a board approved policy on
(a) managing the risks, including currency risk, if any, and
(b) handling customer grievances arising out of such activities.
• A monitoring mechanism, at least at monthly intervals, shall be put in place for such services
Name of the agency Minimum Investment Grade Credit Rating
(a) The Credit Rating Information Services of India Ltd. (CRISIL) FA- (FA Minus)
(b) ICRA Ltd. MA- (MA Minus)
(c) Credit Analysis & Research Ltd. (CARE) CARE BBB (FD)
(d) Fitch Ratings India Private Ltd. tA-(ind)(FD)
(e) Brickwork Ratings India Pvt. Ltd. (Brickwork) BWR FBBB
(f) Acuite Ratings & Research Limited ACUITE A
(g) Infomerics Valuation and Rating Private Limited (IVRPL) IVR BBB

35. Thank You
DVS Advisors LLP
India-Singapore-London-Dubai-Malaysia-Africa
www.dvsca.com
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