In light of the revised reporting structure for foreign investments under the recently notified Single Master Form, the Reserve Bank of India (‘RBI’) has, by a notification dated August 30, 2018, amended the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017 as under:

i.  Form ARF: The requirement of reporting foreign investments in the advance reporting form (Form ARF) has been discontinued.

ii.  Downstream Investment Reporting: Prior to the amendment, an Indian company making an investment which would have been considered as indirect foreign investment in another Indian company was required to: (a) notify the Secretariat for Industrial Assistance, Department of Industrial Policy and Promotion (‘DIPP’) of such investment; and (b) file Form DI (Downstream Investment) within 30 (thirty) days of such investment, even if the capital instruments had not been allotted to such investing company. Pursuant to the amendment, in addition to an Indian company, an investment vehicle making any downstream investment which is considered as indirect foreign investment for the investee Indian entity is also required to report such downstream investment to DIPP within 30 days of such investment. Further, the Form DI is now required to be filed by the Indian company and investment vehicle within 30 days from the date of allotment of capital instruments to the investing entity.

iii. Form InVi: An investment vehicle[1] which has issued its units to persons resident outside India is required to file Form InVi within 30 days from the date of issue of such units.

[1] ‘Investment Vehicle’ means an entity registered and regulated under relevant regulations framed by Securities and Exchange Board of India or any other authority designated for the purpose and shall include Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvIts) and Alternative Investment Funds (AIFs).