All Indian companies having FDI will mandatorily have to get registration completed with RBI and create an Entity Master on the provided link within 12th July 2018.
Complete foreign investments held by the company against which shares have been issued (reported and registration issued by RBI/reported pending registration/not reported) will have to update in the Entity master.
This interface will be available on RBI website www.rbi.org.in from June 28, 2018, to July 12, 2018, for registration of authorized personnel and creation of Entity Master.
Indian entities not complying with this pre-requisite will not be able to receive foreign investment (including indirect foreign investment) and will be non-compliant with Foreign Exchange Management Act, 1999 and regulations made thereunder.
Some of the pre-requisites/features in the new interface for creation of Entity Master
- Companies to authorize personnel through a letter to complete the Entity Master on behalf of the company. An authorization will be by senior-most officials in the company(directors).
- Authority letter to be uploaded on RBI portal by the authorized user on a link shared by RBI.
- A link would be accessible 24*7 for updating within the fortnight.
- RBI will then approve registration vis a vis authority provided and an email notification confirming username and password will be forwarded to the authorized Entity user.
- Authorized Entity user will update details of Indian investee company along with CIN and PAN.
- Entity Master will have details of all Foreign investments (FDI, Portfolio investments, others like ESOP/Convertible Notes etc.) received by the company till the date of migration to Single Master Form
- Companies to report total Foreign investment in equity on a fully diluted basis in the Entity Master.
- NIC codes will be available as a drop down to select its business code.
- Details of Shares issued and transferred hitherto must be updated in the Entity Master (reported/reported and acknowledged by RBI/not -reported). Reporting which are pending in Ebiz will also be a part of the same.
- Downstream investments, if any, will also have to be declared on the portal in the entity master.
- User manual for the steps of registration and creation of Entity Master will be available on the RBI website shortly.
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