RBI ISSUES CIRCULAR ON FOREIGN DIRECT INVESTMENT BY CITIZEN / ENTITY INCORPORATED IN PAKISTAN

The Reserve Bank of India (RBI) has said that a person who is a citizen of Pakistan or an entity
incorporated in Pakistan may, with the prior approval of the Foreign Investment Promotion
Board of the Government of India, purchase shares and convertible debentures of an Indian
company under Foreign Direct Investment Scheme, subject to conditions provided the Indian
company, receiving such foreign direct investment, is not engaged or shall not engage in
sectors / activities pertaining to defence, space and atomic energy and sectors/activities
prohibited for foreign investment.