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Sri Lankan firms are now allowed to buy shares or convertible debentures in Indian companies under Foreign Direct Investments, the Reserve Bank of India said Tuesday. The move is subject to specified terms and conditions, the bank said.
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"Persons resident outside India (other than a citizen of Bangladesh or Pakistan) including citizens of Sri Lanka would henceforth be eligible to purchase shares or convertible debentures of an Indian company under Foreign Direct Investment scheme subject to specified terms and conditions," the statement said.