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The Reserve Bank of India (RBI) has asked finance companies to obtain a "no-objection" certificate from it before investing overseas, it said on Monday.

The company will also have to clearly mention the activities that will be done by the overseas entity while making an application to RBI.

They "are not permitted to make direct investment in a foreign entity engaged in activities not approved under FEMA," RBI said, referring to the Foreign Exchange Management Act.

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