The other measures relate to allowing two-way fungibility in the case of GDRs / ADRs, permission to Indian  mutual funds to invest in overseas equity market subject to certain limits, permission to Indian companies to make acquisitions of foreign companies or make direct investment abroad in Joint Ventures/Wholly- owned Subsidiaries, permission to various participants in the foreign exchange market, including FIIs, to avail forward cover subject to genuine underlying exposure, permission to residents to open foreign currency denominated account, etc Alongside the measures taken to encourage overseas investment by resident corporates, steps were taken to contain and calibrate debt-creating inflows.
The thrust of the new ECB policy is to encourage investment in the real sector and infrastructure while at the same time restricting debt flows for purposes other than those adding to the capital stock. RBI also encouraged the setting up of CCIL to reduce settlement risk.