rbi also exercises a system of capital controls in addition to the intervention (through active trading) in the currency markets. on the current account, there are no currency conversion restrictions hindering buying or selling foreign exchange (though trade barriers do exist). on the capital account, foreign institutional investors have convertibility to bring money in and out of the country and buy securities (subject to certain quantitative restrictions). local firms are able to take capital out of the country in order to expand globally. but local households are restricted in their ability to do global diversification. however, owing to an enormous expansion of the current account and the capital account, india is increasingly moving towards "de facto" full convertibility.