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Biennial survey on Foreign Collaboration in Indian Industry (FCS)

Some other important points to be noted

Q19. Provide the list of the Fatal and Non-Fatal Errors with their descriptions.

Ans.: Please refer to the below table containing the error codes (Fatal error, non-Fatal error) with their descriptions. If you get an acknowledgment of the processed data with any Fatal error codes, then follow the below-mentioned fatal error message/description and revise your data and resubmit it on fcs@rbi.org.in. If you get an acknowledgment of the processed data with any Non-fatal error codes then give justification/clarification on the errors, by sending the same to fcsquery@rbi.org.in.

Sr. No.	Revised- Rejection Criteria	Revised - Error Message/descriptions	Error Code
Fatal Error
1	When the year is left blank	The year cannot be left blank. Please specify the reference year and fill the return.	FCS_F_001
2	When the survey year is incorrect	Survey year should be the subsequent survey after the latest closed survey year in the system. Please specify the correct Survey year	FCS_F_001
3	When survey year is null	The survey year cannot be NULL. Please specify the survey year and fill the return.	FCS_F_001
4	When survey year is incorrect	Please specify proper survey year, please fill the form for the survey year	FCS_F_001
5	When survey year is invalid	The year for which the information is pertaining, is invalid survey year. Please mention the reference year for which the return is filled	FCS_F_001
6	When survey year is closed	FCS survey for {year} is closed	FCS_F_001
7	When name of company not provided	Name of company is not provided. Please provide the name of company.	FCS_F_002
8	When CIN Number is not given	CIN number is not provided. Please provide CIN number of the company.	FCS_F_003
9	When telephone number is not given	Please provide the telephone number of contact person.	FCS_F_004
10	When email id is not given	Please provide the email id of the contact person.	FCS_F_005
Non-Fatal Error
1	When type of organization is not given	Please provide the type of organization.	FCS_NF_001
2	Identification of the Reporting company when it is not given	Please specify the Identification of the Reporting company.	FCS_NF_002
3	When economic activity is not given	Please provide the economic activity.	FCS_NF_003
4	Please provide details for country name / equity share.	Please provide details for country name / equity share.	FCS_NF_008
5	When provide details for country name / loan details is not given	Please provide details for country name / loan details.	FCS_NF_009
6	When provide details for country name / amount details is not given	Please provide details for country name / amount details.	FCS_NF_011
7	When the total equity capital of organization is not given	Please provide the total equity capital of the organization.	FCS_NF_004
8	When foreign participation in equity capital cannot be more than total equity capital.	The foreign participation in equity capital cannot be more than total equity capital.	FCS_NF_005_PY
9	When foreign participation in equity capital cannot be more than total equity capital.	The foreign participation in equity capital cannot be more than total equity capital.	FCS_NF_005_CY
10	When foreign participation in equity capital cannot be more than total equity capital.	The foreign participation in equity capital cannot be more than total equity capital.	FCS_NF_005
11	When Field 2: (2a) cannot be blank for both the years as company is foreign subsidiary.	Field 2: (2a) cannot be blank for both the years as company is foreign subsidiary.	FCS_NF_006
12	When Field 2 cannot be blank for both the years as company is foreign associate.	Field 2 cannot be blank for both the years as company is foreign associate.	FCS_NF_007
13	In part II, block 7, Total value of imports (7.1) cannot be less than sum of imports from foreign parent/associate/collaborator (7.1.1) and imports under collaboration arrangement (7.1.2).	In part II, block 7, Total value of imports (7.1) cannot be less than sum of imports from foreign parent/associate/collaborator (7.1.1) and imports under collaboration arrangement (7.1.2).	FCS_NF_012_PY
14	In part II, block 7, Total value of imports (7.1) cannot be less than sum of imports from foreign parent/associate/collaborator (7.1.1) and imports under collaboration arrangement (7.1.2).	In part II, block 7, Total value of imports (7.1) cannot be less than sum of imports from foreign parent/associate/collaborator (7.1.1) and imports under collaboration arrangement (7.1.2).	FCS_NF_012_CY
15	In part II, block 7, Total value of imports (7.1) cannot be less than sum of imports from foreign parent/associate/collaborator (7.1.1) and imports under collaboration arrangement (7.1.2).	In part II, block 7, Total value of imports (7.1) cannot be less than sum of imports from foreign parent/associate/collaborator (7.1.1) and imports under collaboration arrangement (7.1.2).	FCS_NF_012
16	In part II, block 7, Exports of goods (7.2.1) cannot be less than sum of export of goods produced under foreign collaboration agreements (7.2.1.1) and exports to/on behalf of/through foreign collaborator/associate (7.2.1.2).	In part II, block 7, Exports of goods (7.2.1) cannot be less than sum of export of goods produced under foreign collaboration agreements (7.2.1.1) and exports to/on behalf of/through foreign collaborator/associate (7.2.1.2).	FCS_NF_013_PY
17	In part II, block 7, Exports of goods (7.2.1) cannot be less than sum of export of goods produced under foreign collaboration agreements (7.2.1.1) and exports to/on behalf of/through foreign collaborator/associate (7.2.1.2).	In part II, block 7, Exports of goods (7.2.1) cannot be less than sum of export of goods produced under foreign collaboration agreements (7.2.1.1) and exports to/on behalf of/through foreign collaborator/associate (7.2.1.2).	FCS_NF_013_CY
18	In part II, block 7, Exports of goods (7.2.1) cannot be less than sum of export of goods produced under foreign collaboration agreements (7.2.1.1) and exports to/on behalf of/through foreign collaborator/associate (7.2.1.2).	In part II, block 7, Exports of goods (7.2.1) cannot be less than sum of export of goods produced under foreign collaboration agreements (7.2.1.1) and exports to/on behalf of/through foreign collaborator/associate (7.2.1.2).	FCS_NF_013
19	In part II, block 7, Export of services and other foreign exchange earnings (7.2.2) cannot be less than exports to foreign collaborator/associate (7.2.2.1).	In part II, block 7, Export of services and other foreign exchange earnings (7.2.2) cannot be less than exports to foreign collaborator/associate (7.2.2.1).	FCS_NF_014_PY
20	In part II, block 7, Export of services and other foreign exchange earnings (7.2.2) cannot be less than exports to foreign collaborator/associate (7.2.2.1).	In part II, block 7, Export of services and other foreign exchange earnings (7.2.2) cannot be less than exports to foreign collaborator/associate (7.2.2.1).	FCS_NF_014_CY
21	In part II, block 7, Export of services and other foreign exchange earnings (7.2.2) cannot be less than exports to foreign collaborator/associate (7.2.2.1).	In part II, block 7, Export of services and other foreign exchange earnings (7.2.2) cannot be less than exports to foreign collaborator/associate (7.2.2.1).	FCS_NF_014
22	In part II, block 7, Total value of export on f. o. b. basis (7.2) cannot be less than sum of export of goods (7.2.1) and export of services and other foreign exchange earnings (7.2.2).	In part II, block 7, Total value of export on f. o. b. basis (7.2) cannot be less than sum of export of goods (7.2.1) and export of services and other foreign exchange earnings (7.2.2).	FCS_NF_015_PY
23	In part II, block 7, Total value of export on f. o. b. basis (7.2) cannot be less than sum of export of goods (7.2.1) and export of services and other foreign exchange earnings (7.2.2).	In part II, block 7, Total value of export on f. o. b. basis (7.2) cannot be less than sum of export of goods (7.2.1) and export of services and other foreign exchange earnings (7.2.2).	FCS_NF_015_CY
24	In part II, block 7, Total value of export on f. o. b. basis (7.2) cannot be less than sum of export of goods (7.2.1) and export of services and other foreign exchange earnings (7.2.2).	In part II, block 7, Total value of export on f. o. b. basis (7.2) cannot be less than sum of export of goods (7.2.1) and export of services and other foreign exchange earnings (7.2.2).	FCS_NF_015
25	when company has foreign technical collaboration agreements, please provide the number of agreements.	Since your company has foreign technical collaboration agreements, please provide the number of agreements.	FCS_NF_016
26	agreement details by providing information on all fields need to be filled	Please provide the agreement details by providing information on all fields.	FCS_NF_017
27	Incomplete information. Please provide the agreement details for all the foreign technical collaboration agreements mentioned in field 11(b).	Incomplete information. Please provide the agreement details for all the foreign technical collaboration agreements mentioned in field 11(b).	FCS_NF_018

Foreign Investment in India

Q.20: Can a foreigner set up a partnership/ proprietorship concern in India ? +

Answer: Only NRIs/ OCIs are allowed to invest in partnership/ proprietorship concerns in India on non-repatriation basis.

FAQs on Non-Banking Financial Companies

Inter-corporate deposits (ICDs)

20. Whether ICDs can be accepted repayable on demand ? +

As per provisions of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998, the prohibition from acceptance of deposits repayable on demand applies to public deposits only. ICDs are not public deposits. As such, ICDs can be accepted repayable on demand or notice.

Annual Return on Foreign Liabilities and Assets (FLA) under FEMA 1999

Procedure for submission of the FLA return

Q20. Where should we contact regarding any query/ clarification for submission of FLA Return? +

Ans: Any query regarding filling of FLA return should be sent by email. We will revert back to you within one or two working days.

External Commercial Borrowings (ECB) and Trade Credits

F. LEVERAGE CRITERIA AND BORROWING LIMIT

20. Is the enhancement of ECB amount permitted under the delegated powers? +

Yes, provided the enhanced amount does not breach the applicable annual limit for the automatic route for the current financial year and the other parameters of the ECB are in compliance with the existing ECB guidelines also. Since this would be considered as change in terms for the same ECB, no separate LRN is required for the enhanced amount.

Government Securities Market in India – A Primer

20. What is the ‘When Issued’ market and “Short Sale”? +

"When, as and if issued" (commonly known as ‘When Issued’) security refers to a security that has been authorized for issuance but not yet actually issued. When Issued trading takes place between the time a Government Security is announced for issuance and the time it is actually issued. All 'When Issued' transactions are on an 'if' basis, to be settled if and when the actual security is issued. RBI vide its notification FMRD.DIRD.03/14.03.007/2018-19 dated July 24, 2018 has issued When Issued Transactions (Reserve Bank) Directions, 2018 applicable to ‘When Issued’ transactions in Central Government securities.

Both new and reissued Government securities issued by the Central Government are eligible for ‘When Issued’ transactions. Eligibility of an issue for ‘When Issue’ trades would be indicated in the respective specific auction notification. Participants eligible to undertake both net long and short position in ‘When Issued’ market are (a) All entities which are eligible to participate in the primary auction of Central Government securities,(b) However, resident individuals, Hindu Undivided Families (HUF), Non-Resident Indians (NRI) and Overseas Citizens of India (OCI) are eligible to undertake only long position in ‘When Issued’ securities. (c) Entities other than scheduled commercial banks and Primary Dealers (PDs), shall close their short positions, if any, by the close of trading on the date of auction of the underlying Central Government security.

When Issued transactions would commence after the issue of a security is notified by the Central Government and it would cease at the close of trading on the date of auction. All ‘When Issued’ transactions for all trade dates shall be contracted for settlement on the date of issue. When Issued’ transactions shall be undertaken only on the Negotiated Dealing System-Order Matching (NDS-OM) platform. However, an existing position in a ‘When Issued’ security may be closed either on the NDS-OM platform or outside the NDS-OM platform, i.e., through Over-the-Counter (OTC) market. The open position limits are prescribed in the directions. All NDS-OM members participating in the ‘When Issued’ market are required to have in place a written policy on ‘When Issued’ trading which should be approved by the Board of Directors or equivalent body.

"Short sale" means sale of a security one does not own. RBI vide its notification FMRD.DIRD.05/14.03.007/2018-19 dated July 25, 2018 has issued Short Sale (Reserve Bank) Directions, 2018 applicable to ‘Short Sale’ transactions in Central Government dated securities. Banks may treat sale of a security held in the investment portfolio as a short sale and follow the process laid down in these directions. These transactions shall be referred to as ‘notional’ short sales. For the purpose of these guidelines, short sale would include 'notional' short sale.

Entities eligible to undertake short sales are (a) Scheduled commercial banks, (b) Primary Dealers, (c) Urban Cooperative Banks as permitted under circular UBD.BPD (PCB). Circular No.9/09.29.000/2013-14 dated September 4, 2013 and (d) Any other regulated entity which has the approval of the concerned regulator (SEBI, IRDA, PFRDA, NABARD, NHB). The maximum amount of a security (face value) that can be short sold is (a) for Liquid securities: 2% of the total outstanding stock of each security, or, ₹ 500 crore, whichever is higher; (b) for other securities: 1% of the total outstanding stock of each security, or, ₹ 250 crore, whichever is higher. The list of liquid securities shall be disseminated by FIMMDA/FBIL from time to time. Short sales shall be covered within a period of three months from the date of transaction (inclusive of the date). Banks undertaking ‘notional’ short sales shall ordinarily borrow securities from the repo market to meet delivery obligations, but in exceptional situations of market stress (e.g., short squeeze), it may deliver securities from its own investment portfolio. If securities are delivered out of its own portfolio, it must be accounted for appropriately and reflect the transactions as internal borrowing. It shall be ensured that the securities so borrowed are brought back to the same portfolio, without any change in book value.

Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024

National Common Mobility Card (NCMC) issued by Paytm Payments Bank

20. Can I transfer the balance from my old NCMC card issued by Paytm Payments Bank to a new card obtained from another Bank? +

Balance transfer feature is not available in the NCMC card. Therefore, you may use the card upto the available balance. In case you have some more balance which you have not been able to use, you may request Paytm Payments Bank for a refund.

Retail Direct Scheme

Know Your Customer (KYC) related queries

20. What if my KYC process does not get completed in one session? +

Your progress during KYC verification process will be saved so that you do not have to re-enter the details if you start again. The saved progress can be accessed using the link in the email which you received after registration, intimating you about KYC initiation. However, when you start again, you will have to keep clicking on ‘Next’ to move ahead without re-entering the previously saved details.

Domestic Deposits

II. Deposits of Non-Residents Indians (NRIs)

20. What is meant by Reinvestment Deposit? +

Reinvestment deposits are those deposits where interest (as and when due) is reinvested at the same contracted rate till maturity which is withdrawable with the principal amount on maturity date. It is also applicable to domestic deposits.

All you wanted to know about NBFCs

B. Entities Regulated by RBI and applicable regulations

20. What are the regulations for lending against security of shares by NBFCs?

NBFCs shall comply with the regulations contained in para 36 of the Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) 2023 (as amended from time to time) while granting loans against security of shares. The regulations include, inter alia, maintaining a Loan to Value (LTV) ratio of 50% at all times, accept only Group 1 securities as collateral for loans of value more than ₹5 lakh where lending is done for investment in capital markets, undertake necessary reporting to stock exchanges on shares pledged in their favour, etc.
In addition to the above, there are other related regulations on NBFCs viz., there shall be ceiling of ₹1 crore per borrower for financing subscription to Initial Public Offer (IPO) and NBFCs can fix more conservative limits. Further, NBFCs are prohibited from lending against security of their own shares and debentures.