Foreign Direct Investment rules require prescribed entry routes, pricing, payment methods and mandated reporting and monitoring. Foreign investment in India is governed by FEMA and the consolidated FDI policy, permitting investment under the Automatic or Government Routes and specifying eligible non-resident investors and instruments (equity, fully and mandatorily convertible preference shares and debentures). Pricing must be determined upfront with prescribed valuation methods; payments must be made by approved banking channels or escrow; shares must be issued within the stipulated retention period or refunded. Sectoral caps and prohibited activities are specified. Extensive reporting and compliance obligations apply, including prescribed forms for fresh issues, transfers and conversions, and monitoring by AD banks and the Reserve Bank.