Checklist of Foreign Direct Investment (FDI) compliances under FEMA / RBI Compliances:

Sr. Compliance Details of Compliance(s) Due Date

No. Particulars
1 Filing of Annual Return  An Indian Company which has received Foreign Direct On or before 15th July
on Foreign Liabilities Investment (FDI) and/or made Overseas Direct every year.
and Assets (FLA Investment (ODI) or LLP which has received investment
Return) by way of capital contribution in the previous year
including the current year, shall submit form FLA to the
RBI.
 If the Indian company does not have any outstanding
investment in respect of FDI or ODI as at the end of the
reporting year, the Company need not submit the FLA
Return.
 Similarly, if the Indian company has not received any
fresh FDI or ODI in the latest year but the company has
outstanding FDI and/or ODI, then that company is still
required to submit the FLA Return every year

Note: Year for this purpose shall be reckoned as April to

March.
2 Filing of Annual  An Indian Party/Resident Individual which has made an On or before 31st
Performance Report Overseas Direct Investment (ODI) has to submit an December every
(APR) Annual Performance Report (APR) in Form ODI Part II year.
to RBI through the AD bank in respect of each Joint
Venture (JV), Wholly Owned Subsidiaries (WOS)
outside India.
 APR has to be based on the audited annual accounts of
the JV/WOS for the preceding year, unless specifically
exempted by RBI.
 APR is required to be certified by the statutory auditor of
the Indian party. Certification of APRs by the Statutory
Auditor or Chartered Accountant shall not be insisted
upon in the case of Resident Individuals and self-
certification can be accepted in such case.
3 Filing of return of Eligible resident entities (Eligible Borrowers) who have Within 7 working
External Commercial raised commercial loan from recognised non-resident days from the close
Borrowing in Form ECB- entities in foreign denominated currency or in Indian of each month.
2. Rupees are required to report all ECB transactions to the
RBI on a monthly basis through an AD Category – I Bank in
the form of ‘ECB 2 Return’ on a monthly basis.
4 Filing of Advance An Indian Company receiving investment from outside India Within 30 days from
Reporting Form (AFR) for issue of shares or other eligible securities under the FDI the date of receipt of
Scheme has to report the details of the amount of amount of
consideration to the Regional Office concerned of the consideration.
Reserve Bank through its AD Category I bank in Advance
Reporting Form (AFR).
5 Filing of Foreign When an Indian Company receives the foreign investment Not later than 30
Currency-Gross and against such investment the Company allots days from the date of
Provisional Return shares/other equity instruments (i.e. issue of bonus or issue of shares.
(Form FC-GPR) rights shares to persons resident outside India directly
or on amalgamation/ merger with an existing Indian
company, as well as issue of shares on conversion of
ECB/ royalty/ lumpsum technical know-how fee/
import of capital goods by units in SEZs, issue of
Participating interest/rights in Oil Fields) to such foreign
investor then it is the duty of the company to file details of
such allotment of shares with the RBI.
6 Filing of Foreign  A person resident in India can transfer by way of sale, Within 60 days from
Currency Transfer Form shares/convertible debentures (including transfer of the transfer of capital
(Form FC-TRS) subscriber’s shares), of an Indian Company under private instruments or
arrangement to a person resident outside India. receipt/remittance of
 General permission is also available for transfer of funds.
shares/convertible debentures, by way of a sale under
private arrangement by a person resident outside India to
a person resident in India.
 In either of the above case, Form FC-TRS shall have to
be filed with the AD category-I bank.
 The onus of submission of Form FC-TRS within the
timeframe would be on the resident transferor / transferee
in India or the person resident outside India holding
capital instruments on a non-repatriable basis, as the
case may be.
 Transfer of Equity Instruments on a recognized stock
exchange by a person resident outside India shall be
reported by such person in Form FC-TRS.
 However, in cases where the NR investor, including an
NRI, acquires shares on the stock exchanges under the
FDI scheme, the person resident outside India would
have to file Form FC-TRS with the AD category-I bank.
 The sale consideration in respect of equity instruments
purchased by a person resident outside India, remitted to
India through normal banking channels, shall be subject
to KYC check by the remittance receiving AD-category-I
bank at the time of receipt of funds.
7 Receipt of Advance  Where an exporter receives advance payment (with or
against Exports without interest) from a buyer outside India, the exporter
shall be under an obligation to ensure that the shipment
of good is made within one year from the date of
receipt of advance payment.
 The rate of interest, if any, payable on the advance
payment does not exceed London Inter-Bank Offered
Rate (LIBOR)+100 basis points.
 In the event of the exporter’s inability to make the
shipment, partly or fully, within one year from the date of
receipt of advance payment, no remittance towards
refund of unutilized portion of advance payment or
towards payment of interest shall be after the expiry of the
said period of one year, without the prior approval of RBI.
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