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<h1>Overseas Investment rules require RBI oversight, eligibility controls, pricing discipline and sectoral prohibitions on cross border investments.</h1> The rules govern Overseas Investment by residents, defining ODI and OPI, classifying instruments, and requiring investments to be in bona fide business activity with Reserve Bank and AD bank oversight. Schedules set modalities and limits for Indian entities, individuals, trusts, funds and IFSC investments. Operational safeguards include arm's length pricing, No Objection Certificates for certain investors, holding period and documentation requirements for transfers and restructurings, and valuation certification where diminution thresholds are crossed. Prohibitions restrict investment into real estate trading, gambling and specified rupee linked products without approval.