Foreign direct investment by Pakistani nationals permitted with prior FIPB approval, subject to sectoral exclusions and Schedule I conditions. A Reserve Bank circular permits persons resident outside India who are citizens of Pakistan or entities incorporated in Pakistan to purchase shares and convertible debentures under the Foreign Direct Investment framework with prior approval of the Foreign Investment Promotion Board, subject to Schedule I conditions; investments are barred if the Indian recipient is or will be engaged in defence, space, atomic energy or other sectors prohibited for foreign investment, and banks must inform customers of these conditions.