Revised SOP for Processing FDI Proposal


I. Online Filing of Application

  • Proposals for foreign investment in sectors/activities requiring Government approval would be filed online through the Foreign Investment Facilitation Portal (FIFP).
  • The applicant shall make the application as per the format and requirements under the FIFP and upload documents as per the list prescribed by DPIIT.
  • After a proposal is filed online, DPIIT will identify the concerned Administrative Ministry/Department (Competent Authority) and e-transfer the proposal within two (02) days for processing the case.

II. Competent Authority

  • DPIIT has recognized different Ministry / Department for various sectors to process the Foreign Investment proposals and grant approvals. [Competent Authority List]

III. Procedure for Processing of Applications

  • Once Proposal is received, same shall be circulated within DPIIT, Competent Authority, the Reserve Bank of India (RBI), Ministry of Home Affairs (MHA), Ministry of External Affairs (MEA) for security clearances within stipulated time frame for faster approval of the proposal.
  • Applications arising out of Press Note 3 of 2020 stating investments from an entity of a country which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country will require security clearance from MHA.
  • Further, revised SOP states that an inter-ministerial committee has been constituted, consisting of Secretaries from DPIIT, Department of Economic Affairs, Ministry of Corporate Affairs, MHA, concerned administrative Ministry/ Department and representatives from RBI and NITI Aayog to FastTrack delayed FDI proposals for timely disposal.
  • As per revised SOP, approval from NCLT will be required for proposals involving mergers/ demergers/ amalgamations of companies in India
  • Revised SOP gives applicant an option to surrender FDI approval letter after submitting signed documents with reasons of surrender/ withdrawal clearly explained.

IV. Time Limits

  • DPIIT has set time limits for different action points which needs to be adhered to by Competent Authority, DPIIT, Ministry/ Department, RBI, MHA. Time limit for approval/ rejection of FDI proposals has been increased from 2 weeks to 4 weeks for competent authority as per revised SOP. [Time Limit]

V. Monitoring & Review

  • Competent Authority is to hold monthly review meeting on pending FDI Proposals whereas secretary of DPIIT to review the pending FDI Proposals with concerned Administrative Ministries/ Departments periodically every 4-6 weeks.