Regulation 3 - Financial commitment by Indian entity by modes other than equity capital - Foreign Exchange Management (Overseas Investment) Regulations, 2022

3. Financial commitment by Indian entity by modes other than equity capital, (1) The Indian entity may lend or invest in any debt instrument issued by a foreign entity or extend non-fund based commitment to or on behalf of a foreign entity including overseas step down subsidiaries of such Indian entity subject to the following conditions within the financial commitment limit as prescribed in the Foreign Exchange Management (Overseas Investment) Rules, 2022: (i) the Indian entity is eligible to make Overseas Direct Investment (ODI); (ii) the Indian entity has made ODI in the foreign entity; (iii) the Indian entity has acquired control in such foreign entity at the time of making such financial commitment. (2) The financial commitments under regulations 4, 5, 6 and 7 shall be reckoned towards the financial commitment limit referred to in sub-regulation (1).