Overseas investment restrictions prohibit investment in specified foreign businesses and limit layered structures involving investments back into India. Rule 19 prohibits overseas direct investment in foreign entities undertaking specified real estate activity, gambling, or Indian-rupee-linked financial ... Summary
Overseas investment restrictions prohibit investment in specified foreign businesses and limit layered structures involving investments back into India.
Rule 19 prohibits overseas direct investment in foreign entities undertaking specified real estate activity, gambling, or Indian-rupee-linked financial product dealings without specific approval. Investment in recognised foreign start-ups is restricted to internal accruals for Indian entities and own funds for resident individuals. Financial commitment is also barred where a foreign entity invests into India and creates more than two subsidiary layers, subject to exclusions for specified banking, systemically important non-banking financial, insurance, and Government companies.
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