DPIIT Issues Revised SOP For Processing FDI Proposals

The Department for Promotion of Industry and Internal Trade ("DPIIT") has issued a new Standard Operating Procedure ("SOP") for processing of Foreign Direct Investment ("FDI") proposals on August 17, 2023 ("New SOP"), which supersedes the earlier SOP of November 9, 2020 ("Erstwhile SOP"). These SOPs are regulatory guidelines governing the process and procedure of filing and processing of FDI proposals for investments in sectors requiring Government approval as per Foreign Exchange Management Act, 1999 and the rules, regulations, guidelines, policies and circulars issued thereunder ("FEMA"). Some notable changes under the New SOP are as follows:

1. Paperless process: In an attempt to digitise the filing process, the New SOP mandates online filing of FDI proposals (along with scans of required supporting documents) as opposed to the Erstwhile SOP, which provided for an option to make physical or online applications. Except where authenticity of any scanned document