• ANS-B
  • An external commercial borrowing (ECB) is an instrument used to facilitate the access to foreign money by Indian corporations and PSUs.
  • ECBs include commercial bank loans, buyers’ credit, suppliers’ credit, securitised instruments such as floating rate notes and fixed rate bonds etc., credit from official export credit agencies and commercial borrowings from the private sector window of multilateral financial Institutions.
  • ECBs cannot be used for investment in stock market or speculation in real estate.


  • ANS-B
  • SEBI is a statutory body under SEBI Act, 1992.


  • ANS-A
  • IDFs are investment vehicles, which can be sponsored by commercial banks and NBFCs in India in which domestic/offshore institutional investors, specially insurance and pension funds can invest through units and bonds issued by the IDFs.
  • Infrastructure Debt Funds (IDFs)can be set up either as a Trust or as a Company.
  • A trust based IDF would normally be a Mutual Fund (MF), regulated by SEBI, while a company based IDF would normally be a NBFC regulated by the Reserve Bank.

  • ANS-B


  • ANS-A
  • Optionally Fully Convertible Debentures (OFCD): OFCD is a type of debt security where the option is given to the holder if he wants to convert his debenture into equity share after stipulated time.
  • This instrument does not yield interest in the initial period of say, 6 months.
  • After this period option is given to the holder of OFCDs to apply for equity at a “premium” for which no additional amount needs to be paid.