On 28th June 2019, Reserve Bank of India vide its circular no. RBI/2018-19/226 A.P. (DIR Series) Circular No. 37 has introduced a web based portal under the name Foreign Liabilities and Assets Information Reporting System (FLAIR) for filing Annual FLA Return from the financial year
2018-19 by replacing the present email-based reporting system.
Reserve Bank of India by introduction of Web based portal, it has facilitated the submission of FLA return by eligible entities including 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.
The features of FLAIR portal is as under:
- The Entities which are eligible to file Annual FLA return shall submit an User Registration Form in https://flair.rbi.org.in and on successful registration the entities can submit the return through RBI generated user name and password
- The form will seek 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.
- There would be system driven validation checks while submitting the return. The entities will receive an acknowledgement receipt upon successful submission of the Return.
- Entities can revise the data, if required, and view/download the information submitted. As per the FLAIR portal home page, the reporting company need to take approval from RBI in case of revision of submitted FLA form after set due date, and also for any revision for the previous year.
- Entities can submit FLA information for earlier year/s after receiving RBI confirmation on their request email.
- The eligible entities are allowed to submit FLA Return for the previous years through web based portal only on receiving a confirmation mail from Reserve Bank of India.
The Reserve Bank India in its Circular has clearly mentioned that the e-mail based submission of FLA forms will be discontinued. The Due date for filing FLA Return is on or before 15th July 2019. Indian entities not complying with above, will be treated as non-compliant with Foreign Exchange Management Act, 1999 and regulations made thereunder.
Click here to read the circular
Click here to access the FLAIR portal
