Who can issue FCCB?
Table of Contents
Who can issue FCCB?
29 dated March 11, 2002 allowing an Indian company or a body corporate, created by an Act of Parliament, to issue FCCBs under the automatic route without the approval of Government or the Reserve Bank. 2.
What is a FCCB discuss?
A foreign currency convertible bond (FCCB) is a type of convertible bond issued in a currency different than the issuer’s domestic currency. In other words, the money being raised by the issuing company is in the form of foreign currency. A convertible bond is a mix between a debt and equity instrument.
What is FCCB full form?
Foreign Currency Convertible Bonds (FCCBs) mean a bond issued by an Indian company expressed in foreign currency, and the principal and interest in respect of which is payable in foreign currency.
Is FCCB part of FDI?
Similarly FCCBs are foreign currency convertible Bonds invested in Indian company. Since these bonds are convertible in to equity shares over a period of time as provided in the instrument, therefore they are covered under FDI policy.
What are the advantages of FCCB?
Benefits of FCCBs The coupon rates on FCCB’s are generally lower than traditional bank interest rates, reducing the cost of debt financing. If converted, the company is able to reduce its debt as a result of foreign currency convertible bonds and thus gains additional, much-needed equity capital.
What is FCCB 11?
FCCB stands for foreign currency convertible bond.
How does FCCB differ from Fceb?
What is the difference between an FCCB and an FCEB? The main difference is that in FCCBs the bonds convert into shares of the company that issued the bonds. Whereas in FCEBs, the bonds are exchangeable for shares of another company, i.e., the Offered Company.
Who can issue FCCB in India?
However, an Indian Company or a Body Corporate created by an Act of Parliament is given permission to: i) issue FCCBs not exceeding USD 500 million to a person resident outside India in accordance with and subject to the specified conditions.
