Standard Time Bound Procedure for FDI Notified to
Attract FDI
1.
Objective & Scope
·
Provides a standardized, paperless framework
for processing Foreign Direct Investment (FDI) proposals.
·
Applicable to proposals requiring Government
approval under FDI Policy & FEMA rules.
2. Online
Filing System
·
All applications must be filed on the FIF/NSWS
portal.
·
No physical documents required; process is fully
digital.
·
Applicants must submit required documents + security
clearance form (if applicable).
3.
Institutional Mechanism
·
DPIIT assigns proposals to the
concerned Ministry/Department (Competent Authority).
·
Proposals circulated to:
o
RBI (FEMA compliance)
o
MHA (security clearance)
o
MEA (especially for border-sharing countries)
4.
Security Clearance Requirements
·
Mandatory for sensitive sectors like:
o
Defence, Telecom, Broadcasting, Civil Aviation,
Space, etc.
·
Also required under Press Note 2 of 2026
(border-sharing countries).
5.
Processing of Applications
·
Competent Authority:
o
Scrutinizes proposals
o
Seeks additional info (via portal only)
o
Ensures compliance with FDI Policy & sectoral
rules
·
Decision communicated online to applicant and
stakeholders.
6. Role
of Higher Authorities
·
Large proposals (above prescribed limits) sent to CCEA
for approval.
·
DPIIT concurrence required for:
o
Rejection
o
Imposing additional conditions
7.
Timelines
·
Total processing time: ~12 weeks (excluding
applicant delays).
·
Key stages:
o
Initial scrutiny: 2 weeks
o
Inter-ministerial consultation: up to 8 weeks
o
Final decision: within 12 weeks
8.
Closure, Rejection & Withdrawal
·
Application may be closed (not rejected) for
incomplete information.
·
Applicant can:
o
Reapply after closure
o
Withdraw proposal anytime with reasons
9.
Approval & Post-Approval
·
Approval issued in prescribed format with conditions.
·
Compliance required with:
o
FEMA, Companies Act, Tax laws, etc.
·
Violations attract penalties under FEMA.
10.
Documentation Requirements
·
Includes:
o
Company incorporation documents
o
Shareholding & beneficial ownership details
o
Financial statements
o
Investment agreements
o
Affidavit & declarations
11.
Special Provisions for Border-Sharing Countries (LBCs)
·
Investments from such countries require:
o
Government approval + stricter scrutiny
·
Expedited approval (60 days) for certain sectors
where:
o
Indian ownership/control remains dominant
12.
Monitoring & Review
·
Each Ministry must have an FDI Cell (Joint
Secretary level).
·
DPIIT conducts regular review meetings on
pending proposals.
Bottom
Line
This SOP creates a centralized, time-bound,
transparent, and digital system for FDI approvals, with enhanced
scrutiny for sensitive sectors and neighbouring-country investments, while
aiming to improve ease of doing business.
<SOP for Processing Foreign Direct Investment (FDI)
Proposals>
[ABS News Service/06.05.2026]