Cross-border investment by financial services firms permitted subject to profit, registration, regulatory approvals and capital adequacy conditions. Indian parties in the financial services sector may invest abroad subject to Part I, provided they have earned net profit in the preceding three financial years from financial services activities, are registered with the Indian regulatory authority, have obtained required approvals in India and abroad for the activity, and have met prescribed prudential capital adequacy norms; additional investments by an existing JV/WOS or its step-down company must similarly comply with these conditions.