The New OI Regime has introduced significant changes to outbound debt investments by Indian entities. While the ambit of debt instruments has been widened, debt investments can now only be made where the Indian entity has control – unlike the erstwhile regime where debt could be infused where the Indian entity had a nominal equity holding. The ambit of debt providers has been expanded to onshore and offshore private credit players as against only banks which have a rather limited risk appetite. 

Overall, these amendments are likely to give a major shot in the arm to overseas M&A activity on the back of a substantially deregulated regime for accessing onshore and offshore leverage for overseas acquisitions.