Section 5 in The Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004
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.
