The Reserve Bank of India wide its Circular RBI/2012-13/173 A. P. (DIR Series) Circular No. 16 dated August 22, 2012 has allowed a person who is a citizen of Pakistan or an entity incorporated in Pakistan, 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, provided that such FDI is not allowed in defence,space and atomic energy and sectors/ activities prohibited for foreign investment.
