Escrow accounts regulate cross-border acquisitions, specifying permitted credits, debits, duration, non-interest status and repatriation rules. An Escrow account in Indian rupees may be opened with an Authorised Dealer as Escrow Agent for acquisition or transfer of capital instruments/convertible notes; permitted credits include foreign inward remittance and authorised-dealer guarantees, while permitted debits follow SEBI (SAST) or related SEBI regulations, including transfer of consideration to beneficiaries and refunds on failed transactions. The account must be non-interest bearing, no facilities may be created against its balances, KYC compliance rests with the Authorised Dealer, and balances may be repatriated after acquisition formalities at prevailing exchange rates; normal operation is limited to six months unless Reserve Bank permission is obtained.