FDI filing with RBI

Foreign Direct Investment (FDI) filing with the Reserve Bank of India (RBI) is a mandatory compliance requirement for Indian entities receiving foreign investment. This process ensures the tracking and regulation of capital inflows into the country as per the Foreign Exchange Management Act (FEMA), 1999. Companies must report the receipt of foreign remittances and the subsequent issuance of shares to foreign investors through forms like the Foreign Currency-Gross Provisional Return (FC-GPR) via the online FIRMS portal. Timely and accurate filing is crucial, typically within 30 days of share allotment, to avoid penalties and ensure adherence to India’s foreign exchange management regulations. This rigorous reporting mechanism helps the RBI maintain oversight of foreign investment patterns and their impact on the Indian economy.