Foreign venture capital entities can now invest in unlisted Indian companies without Reserve Bank of India approval.
The venture capital firm will, however, have to be registered with market regulator SEBI. The investment can be made in an Indian company in 10 specific sectors or in any start-up.The central bank on Thursday amended the regulations governing foreign venture capital investors (FVCI) in order to further liberalise and rationalise the investment regime and to give a fillip to foreign investment in start-ups.

Source - http://www.thehindubusinessline.com