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of <h1>Foreign exchange regulations restrict non-resident investments in India except when specifically permitted under authorized rules</h1> Foreign exchange regulations prohibit persons resident outside India from making investments in India, except as permitted under the Act or related rules and regulations. Existing investments held at the commencement of these regulations are deemed compliant and governed by current provisions. The Reserve Bank may grant permission for foreign investment upon application and for sufficient reasons, subject to necessary conditions. This establishes the general restriction framework while providing exceptions for authorized investments and regulatory discretion.
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