Obviously, the investment should be in equity securities. Some leeway is provided through hybrid securities – fully and compulsorily convertible preference shares and debentures. The other hybrid securities such as partially convertible debentures, optionally convertible debentures or equities with embedded optionality are not treated at par with equities and hence not permitted as instruments for making foreign direct investment. 22.
This activity of the Eurosystem benefits from the monitoring of banking stability in the EU conducted since long by the Banking Supervision Committee, one of the ESCB committees where central banks and supervisory agencies are represented.