Definitions of direct investment and Indian party define the scope and instruments for outward foreign investment. The Regulation defines key terms governing outward investment and related instruments: Direct investment outside India as capital contribution, subscription or share purchase excluding portfolio investment; the Indian party as investing entities including companies, statutory bodies, partnerships and LLPs acting jointly; vehicles such as Alternative Investment Fund and Venture Capital Fund; structures like Joint Venture and Wholly Owned Subsidiary; depositary instruments and convertible/exchangeable bonds; and Financial commitment as aggregated equity, loans and specified guarantee proportions.