The Reserve bank of India has issued a circular on 22 August, 2012 regarding the Foreign direct investment(FDI) by citizen or entity incorporated in Pakistan.
Previously FDI is not allowed for citizen of Pakistan or Company incorporated in the Pakistan but RBI in a view of Globalisation has given investment entry though Approval route of the Foreign Exchange management Act, 1999 (FEMA).
i.e a person who is a citizen of Pakistan or a entity incorporated in Pakistan may, with the prior approval of the Foreign Investment Promotion Board(FIPB) of the Government of India, purchase shares and convertible debentures of an Indian company under Foreign Direct Investment Scheme.
However receiving foreign direct investment is not permitted in the prohibited sectors, shall not engage in sectors / activities pertaining to defence, space and atomic energy and sectors / activities prohibited for foreign investment.
HERE YOU CAN FIND THE RBI CIRCULAR:
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