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of <h1>Non-resident divestments in India and Indian divestments abroad must be reported under FEMA FLA Annual Return sections III & IV.</h1> Disinvestments in India refer to any divestments made by a non-resident direct investor in an Indian company within the year, which must be reported in section III item 3.0 of the Annual Return on FLA. Similarly, disinvestments abroad pertain to any divestments by the Indian company in its Direct Investment Enterprises (DIE) abroad, to be reported in section IV item 3.0. These reports are part of the Information Reporting (FLAIR) system under FEMA guidelines, as of July 21, 2021.
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