RBI revises the annual return on Foreign Liabilities and Assets Information Reporting by Indian companies

Jul 04, 2019 | by Avantis RegTech Legal Research Team


The Reserve Bank of India (RBI) on June 28, 2019, has issued a Notification to replace the present email-based reporting system for submission of the Foreign Liabilities and Assets (FLA) return by the web-based system online reporting portal required to be submitted by July 15 every year, in order to enhance the security-level in data submission and further improve the data quality. It would facilitate data submission by eligible entities, including the Alternative Investment Funds (AIF) registered with the Securities and Exchange Board of India (SEBI) as also the reporting of foreign investment in the form of capital or profit share contribution received or transferred in case of LLPs and investment by persons resident outside India in an investment vehicle and as defined in Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017.

The main features of the revised Foreign Liabilities and Assets Information Reporting (FLAIR) system:

1. Reserve Bank would provide a web-portal interface [https://flair.rbi.org.in] to the reporting entities. 

2. The form will seek investor-wise direct investment and other financial details on fiscal year basis, where all reporting entities are required to provide information on FATS related variables (it was mandatory only for subsidiary companies earlier). In addition, the revised form seeks information on first year of receipt of FDI or ODI and disinvestment.

3. Reporting entities will get system-generated acknowledgement receipt upon successful submission of the form.

4. They can revise the data, if required, and view or download the information submitted.

5. Entities can submit FLA information for earlier years after receiving RBI confirmation on their request email.

6. The existing mechanism of email-based submission of FLA forms will be discontinued.

These above-mentioned directions will come into force with immediate effect and would be applicable for reporting of information for the year 2018-19. The Indian entities not complying with above directions will be treated as non-compliant with the Foreign Exchange Management Act, 1999 and Regulations.

[Notification No. A.P. (DIR Series) Circular No. 37]

 


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