Post-FIPB, RBI to Frame Pro­ce­dure for FDI Ap­proval

The Economic Times - - Economy: Macro, Micro & More -

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.

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