Overseas Investment by Indian Parties in Pakistan

By Accommodation Times Bureau
Foreign Exchange Department
Central Office
Mumbai – 400 001
RBI/2012-13/198 September 7, 2012
A. P. (DIR Series) Circular No. 25
All Category – I Authorised Dealer Banks
Madam / Sir,
Overseas Investment by Indian Parties in Pakistan
Attention of the Authorised Dealer (AD – Category I) banks is invited to the Notification No. FEMA
120/RB-2004 dated July 7, 2004 [Foreign Exchange Management (Transfer or Issue of any
Foreign Security) (Amendment) Regulations, 2004] (the Notification), as amended from time to
2. In terms of Regulation 6 (2) of the Notification ibid, “Notwithstanding anything contained in
these Regulations, investment in Pakistan shall not be permitted.” It has now been decided that
the overseas direct investment by Indian Parties in Pakistan shall henceforth be considered
under the approval route under Regulation 9 of the Notification, ibid.
3. Necessary amendments to the Foreign Exchange Management (Transfer or Issue of Any
Foreign Security), Regulations, 2004 are being issued separately.
4. AD – Category I banks may bring the contents of this circular to the notice of their
constituents and customers concerned.
5. The directions contained in this circular have been issued under Sections 10(4) and 11(1)
of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice
to permissions/approvals, if any, required under any other law.
Yours faithfully,
Dr. (Smt.) Sujatha Elizabeth Prasad
Chief General Manager-In-Charge

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