The BoI was instituted in February after Coast Guard found Loshali's reply to be "unsatisfactory" on a showcause notice issued to him over his remarks that he had ordered the blowing up of a Pakistani boat off the Porbandar coast.
"The BoI is in the last stage. It is being finalised and will be submitted to the Director General soon," defence sources said.
Sources said "suitable action will be taken on receipt of the proceedings of the BoI".
Loshali had contradicted the government's claim that the crew of the intruding Pakistani boat had set the vessel ablaze.
Defence Minister Manohar Parrikar and the Coast Guard have maintained that, as the boat was chased by Coast Guard ships on the intervening night of December 31 and January 1, its crew members had set it ablaze.
Parrikar had said that his ministry stands by its version that the Pakistani boat blew itself up off Porbandar coast on New Year's eve and hinted at disciplinary action against Loshali for his comments.
