Question

Under the operational regulatory framework, an Indian corporate borrower is strictly prohibited from utilizing ECB proceeds, either directly or indirectly, for which of the following activities?

Q: Answer-Under the operational regulatory framework, an Indian corporate borrower is strictly prohibited from...

The ECB framework maintains a strict Negative List of prohibited end-uses to ensure foreign debt does not fuel speculative bubbles. Capital market investments and equity investments buying shares in other companies are explicitly banned under this negative list. Machinery purchase, infrastructure funding, and RD costs are valid productive end-uses.