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<h1>Definitions of direct investment clarify scope and key terms, including Indian party, financial commitment and covered securities.</h1> Regulation 2 sets out definitions for cross border equity transactions, notably Direct investment outside India as capital contribution, memorandum subscription or purchase of existing foreign shares (excluding portfolio investment), the composition of an Indian party, and Financial commitment as equity, loan and guarantees, and it defines instruments including ADR, GDR and FCCB.