Explanation

Option B is correct: Foreign Direct Investment (FDI) represents an equity-based capital inflow where foreign entities acquire a lasting management interest in an enterprise. Unlike external commercial borrowings (ECBs) or foreign loans, FDI is largely a non-debt creating capital flow, meaning it does not impose fixed debt-servicing obligations or repayment liabilities on the recipient nation.

– Option A is incorrect: FDI can flow into both unlisted private limited companies and listed public companies alike.
– Option C is incorrect: Since FDI represents equity participation rather than debt instruments, it does not involve contractual debt servicing (interest and principal repayments).
– Option D is incorrect: Investments by foreign portfolio investors (FPIs) in sovereign government securities are classified as portfolio debt investments, not direct investments.

Therefore, the defining characteristic is Option B.