DIPP to finalise norms of FIPB

NEW DELHI: The department of industrial policy and promotion is meeting on Monday to finalise norms for downstream investments by Indian arms of foreign companies.

The department is considering a proposal, according to which, joint ven-ture companies with foreign equity will need to seek fresh approval from the Foreign Investment Promotion Board (FIPB) within 90 days while investing in downstream companies like subsidiaries.

The proposal also suggests that foreign companie setting up holding companies here without prior approval from FIPB would not be allowed to make in-vestments till they pay penalty to the RBI. Compunding is reccomended by the FIPB in the case of policy violation RBI levies the penalty. The DIPP is, at present, consulting industry representatives on the measures that would be needed to contain violations of downstream investment norms.