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What is the role of FIPB?

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What is the role of FIPB?

The main function of FIPB is to review the execution and usage of funds raised through the Foreign direct investment. To make sure the process of raising FDI is quicker and approvals don’t get delayed in any manner. It acts as a communicator between the government, non-government, industry, and agency bodies.

What is FIPB approval?

Approvals are routed through the FIPB (Foreign Invest Promotion Board). Foreign companies invest in India in different ways and permissions depending on the mode of investment or business model adopted by the company. Moreover, all foreign institutions investing in Indian companies must adhere to SEBI norms.

When was FIPB established?

August 1991
Foreign Investment Promotion Board/Founded

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Under which department does the Foreign Investment Promotion Board work?

Department of Economic Affairs
FDI cases requiring FIPB Approval FIPB proposals will be considered by the reconstituted FIPB in Department of Economic Affairs.

When was FIPB abolished?

On 5 June 2017, the Indian Government announced the abolition of the Foreign Investment Promotion Board (FIPB), a government entity through which inward investment proposals were routed to obtain required government approvals from involved ministries.

What was setup to promote and channelize foreign investment in India?

FIPB was set up to promote and channelize foreign investment in India.

What are the 4 types of foreign direct investment?

Types of FDI

  • Horizontal FDI. The most common type of FDI is Horizontal FDI, which primarily revolves around investing funds in a foreign company belonging to the same industry as that owned or operated by the FDI investor.
  • Vertical FDI.
  • Vertical FDI.
  • Conglomerate FDI.
  • Conglomerate FDI.

What are the 4 types of foreign investments?

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There are four different types of foreign investment. These are Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), official flows, and commercial loans.

What is Foreign Investment Promotion Board (FIPB)?

Foreign Investment Promotion Board (FIPB) The Foreign Investment Promotion Board (FIPB) was a national agency under the Government of India that offered a single-window clearance for FDI applications which did not come under the automatic route. It was under the Ministry of Finance and the Finance Minister was in charge of the FIPB.

What does FIPB stand for?

Foreign Investment Promotion Board (FIPB)

Who was in charge of the FIPB?

It was under the Ministry of Finance and the Finance Minister was in charge of the FIPB. In May 2017, the Union Government decided to phase out the FIPB and it was abolished as announced by the Union Finance Minister Mr Arun Jaitley in the 2017-18 budget speech in the Parliament.

What is FIPB for UPSC?

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The Foreign Investment Promotion Board or FIPB, although abolished, is nevertheless an important concept to understand in terms of economy and polity for the UPSC exam. For more articles on important concepts for IAS exam and updates on UPSC current affairs, please visit BYJU’S Free IAS Prep regularly.