Mint, featured our partner, Archana Balasubramanian, who said that ECB guidelines, while currently liberalised, do not permit the usage of borrowed funds for reasons other than business expansion, infrastructure expansion, etc. Similarly, speculative investment and investment in equity through the ECB mode is not permitted, she added. “However, if the investment is to fund infrastructure activities of a wholly owned subsidiary, that may be treated differently. The intention of the law appears to be to prohibit speculative dealing in equity and not stone-wall genuine business expansion”, in its story Why Aakash’s ₹250-crore fundraise is now a proxy fight over Byju’s ownership.
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