With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic ?

Gives an explicit rule: FDI is investment through 'capital instruments' either in an unlisted Indian company or in 10% or more of the equity capital of a listed Indian company.

A student can combine this with the claim to note that FDI is not limited to listed companies (it includes unlisted ones) and check the 10% threshold for listed firms.

States the Mayaram panel recommendation: any foreign investment equal to or beyond 10% stake in post‑issue paid‑up equity in a listed company is construed as FDI.

Use this 10% rule plus basic knowledge of shareholding to test whether an investment in a listed company below 10% would qualify as FDI (it would not).

Explains the practical distinction: less than 10% in a listed company is portfolio investment; in an unlisted company any quantum is termed FDI.

Combine with a concrete example (e.g., a foreign investor buys 5% of a listed firm's shares) to conclude that such an investment would be FPI, not FDI.

Describes FDI as generally through the primary market with new shares issued, entailing control/management involvement — characteristics distinct from portfolio flows.

A student can check whether the questioned definition (essentially in a listed company) captures these features (it does not address primary issuance or control).

Shows that the proposition 'FDI is investment through capital instruments essentially in a listed company' appears as a multiple‑choice option, implying it's a contested or testable statement.

Use the surrounding answer choices (e.g., non‑debt creating nature) and the correct answer key (from course materials) to judge the option's accuracy against formal definitions.