Regulation 5 - Prohibition on Direct Investment outside India - Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004

Part I Direct Investment outside India 5. Prohibition on Direct Investment outside India Save as otherwise provided in the Act, rules or regulations made or directions issued thereunder, or with prior approval of the Reserve Bank, (1) no person resident in India shall make any direct investment outside India; and (2) no Indian party shall make any direct investment in a foreign entity engaged in real estate business or banking business.