Latest Answer: Hi Guys,
As per my knowledge, there are broadly two sets of regulations application on capital account inflows Foreign Direct Investments (FDI), and External Commercial Borrowings and Trade Credits (ECBs). Very common misconceptions exist as to what transactions are covered under which Regulation, and whether the transaction in question is covered by either of these Regulations. This write up is intended to be a simplified guide to the FDI and ECB Regulations.