Foreign investment in investment vehicles permitted with conditions on control, downstream treatment, and permitted portfolio instruments. Persons and entities resident outside India (with specified nationality exclusions) may invest in units of investment vehicles; such units may be sold, transferred, or redeemed under SEBI regulations and RBI directions. Investment vehicles may issue units against swaps of SPV equity. Downstream investment by an investment vehicle into Indian entities is deemed indirect foreign investment where the sponsor, manager, or investment manager is foreign owned or controlled, with SEBI determining control for non-company forms and residency of individual sponsors or managers determining domestic treatment. AIF Category III with foreign investment is limited to securities permitted for FPIs. RBI will prescribe remittance modalities for proceeds.