Convertible notes by non-residents permitted subject to remittance rules, approval in restricted sectors, and entry route compliance. A person resident outside India (excluding citizens or entities of Pakistan or Bangladesh) may purchase convertible notes from an Indian startup for twenty five lakh rupees or more in a single tranche, with funds received by inward remittance or by debit to permitted foreign currency accounts; repayment or sale proceeds may be remitted or credited in accordance with deposit regulations. Startups in sectors requiring Government approval may issue such notes to non-residents only with approval, and conversion to equity must comply with entry routes, sectoral caps, pricing guidelines and other conditions. NRIs and OCIs may acquire on non-repatriation basis, and transfers must follow prescribed entry routes and pricing.