Regulation 15 - Prohibited activities for investment by a person resident outside India - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017

15. Prohibited activities for investment by a person resident outside India Unless otherwise specifically stated in the Act or the rules or regulations framed thereunder, investment by a person resident outside India is prohibited in: (1) Lottery Business including Government/ private lottery, online lotteries (2) Gambling and betting including casinos (3) Chit funds. Explanation: The Registrar of Chits or an officer authorised by the state government in this behalf, may, in consultation with the State Government concerned, permit any chit fund to accept subscription from Non-resident Indians and Oveseas Citizens of India who shall be eligible to subscribe, through banking channel and on non- repatriation basis, to such chit funds, without limit subject to the conditions stipulated by the Reserve Bank of India from time to time (4) Nidhi company (5) Trading in Transferable Development Rights (TDRs) (6) Real Estate Business or Construction of Farm Houses. Explanation: For the purpose of this regulation, real estate business shall not include development of townships, construction of residential /commercial premises, roads or bridges and Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations 2014. (7) Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes (8) Activities/ sectors not open to private sector investment e.g. (I) Atomic energy and (II) Railway operations (9) Foreign technology collaboration in any form including licensing for franchise, trademark, brand name, management contract is also prohibited for Lottery Business and Gambling and Betting activities