Introduction of Foreign Liabilities and Assets Information Reporting (FLAIR) system by RBI
RBI has replaced the present email-based reporting system for submission of the FLA return by web-based system online reporting portal, to enhance the security-level in data submission and improve data quality.
It facilitates 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/profit share contribution received/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, dated November 7, 2017}.
The main features of revised Foreign Liabilities and Assets Information Reporting (FLAIR) system are:
(a) Reserve Bank had provided a web-portal interface https://flair.rbi.org.in to the reporting entities for submitting “User Registration Form” (containing entity identification and business user details, where LLPs and AIFs will no longer required to use dummy CIN). The successful registration on web-portal enable users to generate RBI-provided login-name and password for using FLA submission gateway and includes system-driven validation checks on submitted data.
(b) The form seeks investor-wise direct investment and other financial details on fiscal year basis as hitherto, 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/ODI and disinvestment.
(c) Reporting entities will get system-generated acknowledgement receipt upon successful submission of the form.
(d) They can revise the data, if required, and view/download the information submitted.
(e) Entities can submit FLA information for earlier year/s after receiving RBI confirmation on their request email.
The existing mechanism of email-based submission of FLA Return has been discontinued.
FLA Online Form is applicable for reporting of information for the year 2018-19 on portal https://flair.rbi.org.in.
Refer RBI Circular- A.P. (DIR Series) Circular No. 37 dated 28.06.2019: Annual Return on Foreign Liabilities and Assets Reporting by Indian Companies.
Source: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT226CBAA4706347E46429D5034B4671A6F60.PDF
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