In fact, most market participants do not finance their entire trading positions with equity but rather fund part of their investments by pledging the securities as collateral in repurchase agreements and asset-backed commercial paper. This implies that asset prices are also affected by funding liquidity, a concept that refers to the ease with which a security can be used to raise outside capital.
If a firm has a foreign currency revenue stream it is optimal for it to borrow in foreign currency as well so that its balance sheet does not carry any currency risk. But if its revenue is all in Rupees, it ought to fully hedge its foreign currency liability and a fully hedged ECB should offer no arbitrage in ideal market conditions.