2. Is there a ban on donations from foreign interests to candidates?

"Foreign contribution should not be accepted by any candidate"

Source: Foreign Contribution (Regulation) Act 2010. 

Even when foreign contribution to candidates is banned, the Government of India changed the definition of a foreign company by amending the Foreign Contribution (Regulations) Act, 2010 through the Finance Bill 2016. 

The amendments include the following: 

“Provided that where the nominal value of share capital is within the limits specified for foreign investment under the Foreign Exchange Management Act, 1999, or the rules or regulations made thereunder, then, notwithstanding the nominal value of share capital of a company being more than one-half of such value at the time of making the contribution, such company shall not be a foreign source"

Source: Finance Bill 2016.