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<h1>Overseas Direct Investment restrictions bar investments in specified sectors and forbid schemes creating more than two subsidiary layers.</h1> Overseas Direct Investment under Rule 19 prohibits residents from investing in foreign entities engaged in real estate activity, gambling, or rupee-linked financial products without RBI approval. Start-up investments must be from internal accruals or resident individuals' own funds. Residents may not make financial commitments that create structures with more than two layers of subsidiaries, and no further layers may be added to existing multi-layer structures. Exceptions cover specified regulated and government companies. Authorised dealer banks must not facilitate transactions in prohibited entities or notified jurisdictions; 'subsidiary' is defined by control, including a stake of ten percent or more.