Use of foreign contribution restricted to stated purposes; administrative expenses regulated and prior approval required to exceed permitted share.

Restriction on utilisation of foreign contribution requires recipients to use funds only for stated purposes and prohibits use for speculative business; the FC(R) Rules define speculative activities and exclude debt based secure investments. Administrative expenses drawn from foreign contribution are limited and require prior Central Government approval when exceeding the prescribed portion; the Rules list included items (salaries, hiring, utilities, accounting, vehicles, reporting, professional fees, rent) and exclude costs directly furthering core welfare, training or research objectives.

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