Capitalisation investment allows Indian parties to convert receivables into foreign investment, subject to Reserve Bank permission. An Indian party may make direct foreign investment by capitalising amounts due from a foreign entity, including receivables for export of goods or software and fees, royalties, commissions or other entitlements for technical know how, consultancy or managerial services; capitalisation can be full or partial, but prior Reserve Bank permission is required where export proceeds remain unrealised beyond six months. The regulation has been superseded by a later notification.