Rule 5 - Debt instruments and non-debt instruments - Foreign Exchange Management (Overseas Investment) Rules, 2022

5. Debt instruments and non-debt instruments. The following shall be the debt instruments and non-debt instruments as determined by the Central Government under sub-section (7) of section 6 of the Act, namely: (A) Debt instruments: (i) Government bonds; (ii) corporate bonds; (iii) all tranches of securitisation structure which are not equity tranche; (iv) borrowings by firms through loans; and (v) depository receipts whose underlying securities are debt securities; (B) Non-debt instruments: (i) all investments in equity in incorporated entities (public, private, listed and unlisted); (ii) capital participation in Limited Liability Partnerships; (iii) all instruments of investment as recognised in the Foreign Direct Investment policy from time to time; (iv) investment in units of Alternative Investment Funds and Real Estate Investment Trust and Infrastructure Investment Trusts; (v) investment in units of mutual funds and Exchange-Traded Fund which invest more than fifty per cent in equity; (vi) the junior-most layer (i.e. equity tranche) of securitisation structure; (vii) acquisition, sale or dealing directly in immovable property; (viii) contribution to trusts; and (ix) depository receipts issued against equity instruments;