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With Budget 2017 phasing out FIPB, RBI to frame policy for FDI approvals

RBI is the nodal agency for administration of foreign investments and foreign exchange

Press Trust of India  |  New Delhi 

Accounting for offshore accounts

The Reserve Bank is expected to formulate standard operating procedure (SOP) for approval of proposals by ministries following the government decision to phase out

The proposal for setting up norms for foreign direct investment (FDI) approvals in sensitive sectors, which are currently under government approval of the 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 improve 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 is abolished, the onus of approving proposals would be on the ministries and regulatory authorities concerned.

The inter-ministerial committee has also discussed the possibility of approving the proposals along with grant of licences, sources said.

In the sensitive sectors like defence and telecom, companies having licences can only seek foreign investments.

Citing example of the telecom ministry, they said, the government may extend the power to approve the proposals to the same ministry.

"For every ministry, the can be requested to prepare the standard operating procedure," they said, adding that the Home Ministry could be asked to vet the proposals from Pakistan and Bangladesh.

These issues are under discussions of the committee formed by the government. It includes representatives from the RBI, Finance Ministry, the Department of Industrial Policy and Promotion, and the Home Affairs Ministry.

is the nodal agency for administration of foreign investments and foreign exchange.

The committee is expected to submit its report within two months which will give guidelines on approval procedures in the sensitive sectors.

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With Budget 2017 phasing out FIPB, RBI to frame policy for FDI approvals

RBI is the nodal agency for administration of foreign investments and foreign exchange

RBI is the nodal agency for administration of foreign investments and foreign exchange
The Reserve Bank is expected to formulate standard operating procedure (SOP) for approval of proposals by ministries following the government decision to phase out

The proposal for setting up norms for foreign direct investment (FDI) approvals in sensitive sectors, which are currently under government approval of the 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 improve 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 is abolished, the onus of approving proposals would be on the ministries and regulatory authorities concerned.

The inter-ministerial committee has also discussed the possibility of approving the proposals along with grant of licences, sources said.

In the sensitive sectors like defence and telecom, companies having licences can only seek foreign investments.

Citing example of the telecom ministry, they said, the government may extend the power to approve the proposals to the same ministry.

"For every ministry, the can be requested to prepare the standard operating procedure," they said, adding that the Home Ministry could be asked to vet the proposals from Pakistan and Bangladesh.

These issues are under discussions of the committee formed by the government. It includes representatives from the RBI, Finance Ministry, the Department of Industrial Policy and Promotion, and the Home Affairs Ministry.

is the nodal agency for administration of foreign investments and foreign exchange.

The committee is expected to submit its report within two months which will give guidelines on approval procedures in the sensitive sectors.
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Business Standard
177 22

With Budget 2017 phasing out FIPB, RBI to frame policy for FDI approvals

RBI is the nodal agency for administration of foreign investments and foreign exchange

The Reserve Bank is expected to formulate standard operating procedure (SOP) for approval of proposals by ministries following the government decision to phase out

The proposal for setting up norms for foreign direct investment (FDI) approvals in sensitive sectors, which are currently under government approval of the 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 improve 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 is abolished, the onus of approving proposals would be on the ministries and regulatory authorities concerned.

The inter-ministerial committee has also discussed the possibility of approving the proposals along with grant of licences, sources said.

In the sensitive sectors like defence and telecom, companies having licences can only seek foreign investments.

Citing example of the telecom ministry, they said, the government may extend the power to approve the proposals to the same ministry.

"For every ministry, the can be requested to prepare the standard operating procedure," they said, adding that the Home Ministry could be asked to vet the proposals from Pakistan and Bangladesh.

These issues are under discussions of the committee formed by the government. It includes representatives from the RBI, Finance Ministry, the Department of Industrial Policy and Promotion, and the Home Affairs Ministry.

is the nodal agency for administration of foreign investments and foreign exchange.

The committee is expected to submit its report within two months which will give guidelines on approval procedures in the sensitive sectors.

image
Business Standard
177 22