Restriction on foreign investment: investments by residents outside India generally prohibited, subject to statutory exceptions and RBI permission. Restriction on investment by persons resident outside India bars such persons from making investments in India except as provided by the Act, its rules or regulations; investments validly held on commencement are deemed to be made under these Regulations. The Reserve Bank may, upon application and for sufficient reasons, permit an investment by a person resident outside India, subject to conditions it considers necessary.