The Government of India has announced a new, streamlined framework to facilitate Foreign Direct Investment (FDI) clearance for listed public limited companies, marking a major step toward improving investor access and easing regulatory processes. Spearheaded by the Department for Promotion of Industry and Internal Trade (DPIIT), in collaboration with the Ministry of Finance, SEBI, and the Reserve Bank of India (RBI), the initiative introduces a centralized, single-window clearance system for FDI proposals, especially those involving sectors under the automatic and government approval routes.

Under the new system, listed public companies will be able to submit and track FDI proposals through a unified online portal, which will consolidate all documentation, approvals, and clearances. This digital interface will integrate real-time data from SEBI, RBI, and the Ministry of Corporate Affairs (MCA) to ensure faster background checks, beneficial ownership verification, and sectoral cap validations. Companies meeting criteria related to clean compliance history, transparent ownership structure, and ESG disclosures will be given fast-track clearance status, with decisions expected within four to six weeks, down from the current average of three to four months.

The move also introduces risk-based categorization of FDI proposals, ensuring that low-risk cases involving reputable investors or sectors not considered sensitive can proceed with minimal intervention, while high-risk cases will still undergo due diligence by the concerned ministries. The government has clarified that this facilitation will not dilute national security checks but will improve procedural efficiency for genuine business transactions. Industry leaders have welcomed the reform as a timely measure to boost global investor confidence, promote capital inflows, and support India’s goal of becoming a preferred destination for strategic and portfolio investments. The new system is expected to go live in the second quarter of FY 2026–27.