This is the sixth article of the series. The previous articles in this regard are consolidated FDI policy of India 2012 by DIPP: objectives, consolidated FDI policy of India 2012 by DIPP: definitions, consolidated FDI policy of India 2012 by DIPP: general provisions, FDI in limited liability partnerships (LLPs) in India 2012, permissible direct and indirect foreign investment in an Indian company. In this article Perry4Law and Perry4Law Techno Legal Base (PTLB) would discuss the provisions pertaining to foreign investment promotion board (FIPB) under the FDI policy of India 2012. These are as follows:
(1) Constitution Of FIPB: FIPB comprises of the following Secretaries to the Government of India:
(a) Secretary to Government, Department of Economic Affairs, Ministry of Finance – Chairperson.
(b) Secretary to Government, Department of Industrial Policy & Promotion, Ministry of Commerce & Industry.
(c) Secretary to Government, Department of Commerce, Ministry of Commerce & Industry.
(d) Secretary to Government, Economic Relations, Ministry of External Affairs.
(e) Secretary to Government, Ministry of Overseas Indian Affairs.
The Board would be able to co-opt other Secretaries to the Central Government and top officials of financial institutions, banks and professional experts of Industry and Commerce, as and when necessary.
(2) Levels Of Approvals For Cases Under Government Route: The Minister of Finance who is in-charge of FIPB would consider the recommendations of FIPB on proposals with total foreign equity inflow of and below Rs.1200 crore.
The recommendations of FIPB on proposals with total foreign equity inflow of more than Rs. 1200 crore would be placed for consideration of CCEA.
The CCEA would also consider the proposals which may be referred to it by the FIPB/ the Minister of Finance (in-charge of FIPB).
(3) Cases Which Do Not Require Fresh Approval: Companies may not require fresh prior approval of the Government i.e. Minister in-charge of FIPB/CCEA for bringing in additional foreign investment into the same entity, in the following cases:
(i) Entities the activities of which had earlier required prior approval of FIPB/CCFI/CCEA and which had, accordingly, earlier obtained prior approval of FIPB/CCFI/CCEA for their initial foreign investment but subsequently such activities/sectors have been placed under automatic route;
(ii) Entities the activities of which had sectoral caps earlier and which had, accordingly, earlier obtained prior approval of FIPB/CCFI/CCEA for their initial foreign investment but subsequently such caps were removed/increased and the activities placed under the automatic route; provided that such additional investment alongwith the initial/original investment does not exceed the sectoral caps; and
(iii) Additional foreign investment into the same entity where prior approval of FIPB/CCFI/CCEA had been obtained earlier for the initial/original foreign investment due to requirements of Press Note 18/1998 or Press Note 1 of 2005 and prior approval of the Government under the FDI policy is not required for any other reason/purpose.
(4) Online Filing Of Applications For FIPB/Government Approval: Guidelines for e-filing of applications, filing of amendment applications and instructions to applicants are available at FIPB‘s website.
