- Introduction:
Foreign Exchange Management Act, 1999 (FEMA) is administered through the Authorised Persons. It is based on the declarations 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 (AD) 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.
- Reporting under statutory requirements:
As per paragraph-9(A)(1) of Schedule I of FEMA Regulations, 2000 and Regulation 13.1(1) of FEMA FDI Regulations, 2017 ,an Indian company which has received amount of consideration for issue of capital instruments (Shares/ Convertible Debentures or any other instruments as per Foreign Direct Investment Scheme) and where such issue is reckoned as FDI, then Indian company shall report each receipt (including each upfront/ call payment) mentioning below details in ARF to the concerned Regional Office (RO) of the Reserve Bank of India (RBI) within 30 days of receipt of funds from the Foreign Entity.
Read more: REPORTING OF ADVANCE REMITTANCE FORM (ARF) TO RBI