Checking the SEBI circular no. CIR/IMD/DF/7/2015 referred to over here: https://www.sebi.gov.in/legal/circulars/oct-2015/guidelines-on-overseas-investments-and-other-issues-clarifications-for-aifs-vcfs_30772.html , point 2.B.c. states that
i. AIFs may invest in equity and equity linked instruments only of offshore venture capital undertakings, subject to overall limit of USD 500 million (combined limit for AIFs and Venture Capital Funds registered under he SEBI (Venture Capital Funds) Regulations, 1996).
iii. For the purpose of such investment, it is clarified that “Offshore Venture Capital Undertakings” means a foreign company whose shares are not listed on any of the recognized stock exchange in India or abroad.
iv. Investments would be made only in those companies which have an Indian connection (e.g. company which has a front office overseas, while back office operations are in India).
So, it is pretty limited and not very useful. Also commodities are not mentioned, whereas the biggest commodity exchanges with the highest liquidity in the world are in the US. If foreign investors are allowed to trade on Indian commodity exchanges and make profits, why not allow Indian traders to make profits in foreign exchanges and bring it back to India?