\u00a0<\/strong><\/span><\/p>\n

With the abolishment of FIPB, the functional and regulatory responsibilities in relation to the applications requiring approval of the government are transferred to DIPP or the concerned Administrative Ministry\/Department as the case may be.<\/span><\/p>\n

The following lists of applications requiring the approval of the government along with the concerned ministry having authority to deal with the proposals are as under: –<\/span><\/p>\n\n\n\n\n\n\n\n\n\n

Sr. No.<\/strong><\/span><\/td>\n	Sector\/Activity<\/strong><\/span><\/td>\n	Administrative Department\/Ministry<\/strong><\/span><\/td>\n<\/tr>\n
1.<\/span><\/td>\n	FDI proposals by NRI\/Export oriented units (EOU) requiring prior approval of the government<\/span><\/td>\n	DIPP<\/span><\/td>\n<\/tr>\n
2.<\/span><\/td>\n	Applications relating to issue of equity shares under the Government route for import of capital goods \/machinery\/equipment (excluding second hand machinery)<\/span><\/td>\n	DIPP<\/span><\/td>\n<\/tr>\n
3.<\/span><\/td>\n	Applications relating to issue of equity shares for pre-operative \/pre-incorporation expenses<\/span><\/td>\n	DIPP<\/span><\/td>\n<\/tr>\n
4.<\/span><\/td>\n	\n Applications of investments from Countries of Concern, requiring clearance under the current FEMA Act.<\/span><\/p>\n (Investments falling under automatic route)<\/span><\/td>\n	Ministry of Home Affairs<\/span><\/td>\n<\/tr>\n
5.<\/span><\/td>\n	\n Applications of investments from Countries of Concern, requiring clearance under the current FEMA Act.<\/span><\/p>\n (Investments falling under approval route)<\/span><\/td>\n	Nodal administrative ministries\/ departments in consultation with Ministry of Home Affairs<\/span><\/td>\n<\/tr>\n
6.<\/span><\/td>\n	Application of FDI into core investment company of an Indian company engaged only into investing capital in other Indian companies<\/span><\/td>\n	DEA, Ministry of Finance<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/strong><\/span><\/p>\n \n ln respect of the applications in which there is a doubt about the Administrative Ministry concerned, the DIPP shall identify the Administrative Ministry\/Department where the application will be processed.<\/span><\/li>\n The applications requiring approval of the government shall continue to be received by the existing FIPB portal which shall be transferred to DIPP from the Department of Economic Affairs within four weeks. On receiving the application the concerned ministry\/department shall process the said application.<\/span><\/li>\n The Government has planned to develop a Standard Operating System (SOP) with detailed guidelines laid down by the DIPP. SOP shall guide the respective Administrative Ministries\/Departments\/Sector regulators regarding the processing of FDI approvals.<\/span><\/li>\n The main objective behind creating SOP is to adopt a uniform and consistent process. The SOP shall involve the process of Inter-Ministerial consultations wherever necessary. It shall also recognize the ordinary FDI applications, including those related to NRI, EOU, SBRT, and MBRT which should be decided in sixty days.<\/span><\/li>\n The concurrence of DIPP is made mandatory in cases where the concerned authority has rejected the application or has granted permission subject to additional conditions. The respective Administrative Ministries\/Departments are burdened with an additional duty to monitor compliance of conditions under the FDI approvals including the past cases where approval was granted by FIPB.<\/span><\/li>\n The 4500 files which are currently held by the FIPB secretariat are of permanent nature and shall be transferred to the concerned Ministry. All present, past and future cases in relation to approvals of FDI shall be handled by the respective Administrative Ministries\/ Departments. The RTI applications pending with the FIPB secretariat shall be transferred to the concerned Administrative Ministry\/Department. All applications pending with the FIPB portal as on the date of abolition of FIPB shall be transferred to the respective Admi nistrative Ministry\/Department by the DlPP immediately upon receipt thereof.<\/span><\/li>\n<\/ul>\n It is very good and bold move by the Government. Most of the sectors have already been liberalized to come through the “automatic” route, without needing FIPB clearance. This should bring in more FDI in India. There is certainly an ignited ray of hope that India will become more attractive place for Foreign Investment and it will attract more inflow of FDI.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" India has a very well formulated Foreign Direct Investment (FDI) policy. FDI is channeled into India subjected to entry regulations. FDI entry can be made under two categories \u2013 Approval route and Automatic route. The FDI Policy, Press Notes and other related notified guidelines formulated by Department of Industrial Policy and Promotion (DIPP) in the … Read more<\/a><\/p>\n","protected":false},"author":132,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[442],"tags":[466,470],"class_list":["post-3974","post","type-post","status-publish","format-standard","hentry","category-fema","tag-fema","tag-fipb"],"yoast_head":"\n