Post-FIPB, RBI to Frame Procedure for FDI Approval
New Delhi: The Reserve Bank is expectedtoformulatestandardoperating procedure (SOP) for approval of FDI proposals by ministries following the government decision to phase out FIPB.
The proposal for setting up norms for foreign direct investment (FDI) approvals in sensitive sectors, which are currently under government approval of the FDI policy, was discussed at a recent inter-ministerial meeting.
According to sources, several options came up for discussions at the meeting. In order to further im- prove ease of doing business, the government has decided to abolish Foreign Investment Promotion Board and form a new mechanism for expeditious clearance of foreign investment proposals.
Once the FIPB is abolished, the onus of approving FDI proposals would be on the ministries and regulatory authorities concerned.
The inter-ministerial committee has also discussed the possibility of approving the FDI proposals along with of licences, sources said.