FIRMS (Foreign Investment Reporting and Management System)

1. Introduction

1.1 The Reserve Bank, in the First Bi-monthly Monetary Policy Review dated April 5, 2018 announced that, with the objective of integrating the extant reporting structures of various types of foreign investment in India, it will introduce a Single Master Form (SMF) subsuming all the existing reports.

1.2 In order to implement this announcement, the Reserve Bank is introducing an online application, FIRMS (Foreign Investment Reporting and Management System), which would provide for the SMF. FIRMS would be made online in two phases. In the first phase, the first module viz., the Entity Master, was made available online. Instructions in this regard were already issued through A. P. Dir. Series Circular No. 30 dated June 07, 2018.

1.3 In the second phase, the second module is being made available with effect from September 01, 2018. With the implementation of SMF, the reporting of FDI, which is presently a two-step procedure viz., ARF and FC-GPR is merged into a single revised FC-GPR. At present five forms viz., FC-GPR, FC-TRS, LLP-I, LLP-II and CN are being made available for filing in SMF. The other four forms viz., ESOP, DI, InVi and DRR would be made available subsequently. With effect from September 01, 2018, all new filings for the above 5 forms have to be done in SMF only.

1.4 The first module was made available to the public for data entry between June 28 (at 1:00 PM) and July 12, 2018. The date was extended till July 20, 2018. For those companies which could not register within the stipulated time period may register for the entity master with effect from September 01, 2018. However, they shall provide the reasons for not making registration within the time period along with the authority letter.

2. Important Abbreviations and Definitions

Abbreviations

Abbreviation Description
FEMA 20(R) Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2017 dated November 07, 2017 and as amended from time to time.
FIRMS Foreign Investment Reporting and Management System
SMF Single Master Form
AD Bank Authorised Dealer Bank
BU Business User
EM Entity Master
LLP Limited Liability Partnership
CN Convertible Notes

Definitions

1. FIRMS: An online reporting platform for reporting of foreign investment in India in SMF. FEMA 20(R) prescribes for the reporting of foreign investment in India through various returns. FIRMS provides a one stop shop, 24*7 online reporting facility for the applicant.

2. SMF: A master form which provides for the reporting of 9 forms for foreign investment viz., FC-GPR, FC-TRS, LLP-I, LLP-II, CN, DRR, ESOP, DI, InVi. With effect from September 1, 2018, five forms viz., FC-GPR., FC-TRS, LLP-1, LLP-II and CN would be made available. Other four forms viz., ESOP, DI, DRR and InVi would be made available subsequently.

3. Business User : The applicant reporting the for the transaction in Single Master form at FIRMS. A BU can use his login credentials for only the entity that has authorized him/her to report the transactions. If the person wants to act as a BU for another entity, he must register himself separately. Further, at the time of registration, BU has to select the IFSC code of the bank which would approve the eKYC (explained under the head “Registration of Business User”) and the reporting would be made in SMF. In case the IFSC details are changed., i.e BU wishes to submit the reporting to another branch or another bank, the entity being the same, he/she needs to repeat the registration process for Business user with the new IFSC code and obtain separate Login.

4. E-KYC: Every business user has to be eKYC verified before any reporting can be made in the Single Master Form. This would ensure that only genuine Logins are made available in the FIRMS application. All eKYC would be verified by the AD Banks.

For User Manual for SMF-FIRMS Application of RBI  please click on the following  link:User manual for SMF- FIRMS application

Source: rbi.org.in

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