1. FIPB approval is required for all other proposals not eligible for Automatic Approval.Applications to be submitted in Form IL-FC
2. From where one can get NIC Codes 1987 for products/services, to be filled in IL-FC Form?
Ans. Investors are required to give the description of activities as per the National Industrial Classification of all Economic Activities (NIC), 1987, while submitting applications to the RBI/SIA.
Copies of the NIC, 1987 published by the Ministry of Statistics & Programme Implementation , Central Statistical Organization, can be obtained on payment from the Controller of Publications, 1 Civil Lines, Delhi 110054 or from any authorised agent
3. What are the factors considered by the FIPB while examining proposals?
Ans. To impart greater transparency to the approval process, guidelines have been issued which govern the consideration of FDI proposals by the FIPB. These are given at Annexure III of the Manual on Foreign Direct Investment in India - Policy & Procedures.
4. ase let us know the status of the application made to FIPB?
Ans. The status of the FIPB application can be seen on the website of Department of Economic Affairs (http://finmin.nic.in) . However, status for the applications involving NRI/OCB investment and 100% EOU is available at "SIA Application status" link on the opening page of the DIPP website (http://dipp.nic.in ) wherein following three categories are given.
a. Daily Status of Applications for NRI / OCB investment and 100% EOU for the week.
b.Weekly Status of Applications for NRI/OCB Investmebt and 100% EOU for the week ending
c. Date of posting of approval letters of applications for NRI/OCB investment and 100% EOU
5. Private companies incorporated in India with permissible FII/NRI/OCB/PIO equity within the limits (as in the case of telecom sector FDI limit up to 49% inclusive of both FDI and portfolio investment) to set up up linking hub (teleports) for leasing or hiring out their facilities to broadcasters.
6. at is the Government Policy for Telecom Sector?
Ans. For major sector specific guidelines including Telecom Sector, please refer to Annexure IV at the Manual on FDI in India - Policy & Procedures in India of the website.
7. The following kinds of trading are also permitted, subject to provisions of EXIM Policy:
a. Companies for providing after sales services ( that is not trading per se)
b. Domestic trading of products of JVs is permitted at the wholesale level for such trading companies who wish to market manufactured products on behalf of their joint ventures in which they have equity participation in India.
c. Trading of hi-tech items/items requiring specialised after sales service
d. Trading of items for social sector
e. Trading of high-tech, medical and diagnostic items.
f. Trading of items sourced from the small scale sector under which, based on technology provided and laid down quality specifications, a company can market that item under its brand name.
