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<h1>Foreign investment rules: consolidated NDI/FEMA framework sets entry routes, sectoral caps, valuation and transfer compliance.</h1> Consolidated Master Direction governs foreign investment under FEMA/NDI Rules, defining instruments, entry routes (automatic and government approval), sectoral caps and prohibited sectors; prescribes issuance, pricing and payment conditions for equity instruments, convertible notes, ESOPs and IDRs; regulates transfers, pledges, escrow and downstream/indirect foreign investment with valuation, funding and reporting requirements; assigns compliance responsibilities to investee entities and AD banks, and provides procedural annexes for investor categories and remittance/tax rules.