Without going into details, the overarching principle that has guided the work of this Committee is that whichever asset class is open to a non-resident to invest in the domestic markets, should also be accessible to non-residents in international market through an appropriate institutional framework and safety measures, including compliance with KYC and other international norms. 12.
As indicated earlier, the policy regime in respect of debt flows, particularly contracted borrowings commonly known as ECB, has a pronounced bias towards long term flows. The other restrictions at present relate to the type of lender, the type of borrower, the end use and the cost of borrowing.