Foreign currency convertible bonds (FCCBs) are bonds that can be converted into equity at maturity. FCCBs are an equity bull market instrument. If the share price of the issuer has fallen since the issue, the investor can ask, instead, for redemption of the bonds in cash. From the ...
A foreign currency convertible bond is a special type of bond issued in a currency other than the home currency. In other words, companies issue convertible foreign currency bonds to raise money in foreign currency. In today’s globalization scenario, FCCBs hold high significance, especially for ...
Foreign currency convertible bonds: An Indian perspective Foreign currency convertible bonds (FCCBs) are bonds that can be converted into equity at maturity. FCCBs are an equity bull market instrument. If the share price of the issuer has fallen since the issue, the investor can ask, instead,...
A company may decide to raise money outside its home country to gain access to new markets for new or expansionary projects. FCCBs are generally issued by companies in the currency of those countries where interest rates are usually lower than the home country or foreign country economy is mor...
3.The inward remittance received via issuance of Foreign Currency Convertible Bonds (“FCCBs”) and Depositary Receipts (“DRs”) would be treated as FDI. 4.FDI policy was silent on the issuance of convertible warrants and partly paid-up shares by Indian companies to foreign investors. It only...
Capital markets via Euro issues (Foreign Currency Convertible Bonds (FCCBs)/Equity Shares under the Global Depository Mechanism). Private placements or preferential allotments. FDI is freely allowed in all sectors including the service sector in India, with certain restrictions in a few sectors where...
In this paper, the author focuses on one such ECB instrument - Foreign Currency Convertible Bonds (FCCBs). The author explains the concepts behind FCCBs, advantages and disadvantages for issuers and investors, the regulatory framework and associated taxation and redemption policies. However, when ...
This paper examines the role of Foreign Currency Convertible Bonds (FCCBs), its nature, problems and relevant current issues in relation to foreign investment in India. FCCBs play a pivotal role in foreign investment in India. It is an important instrument to raise funds from the International ...
The FCCB quandary ; When the stock market was booming, dozens of Indian companies issued foreign currency convertible bonds (FCCBs) to raise cheap capital. But with stock prices crashing and conversion coming up, they are in a soup.K.R. Balasubramanyam...
11. Can Indian companies issue Foreign Currency Convertible Bonds (FCCBs)? FCCBs can be issued by Indian companies in the overseas market in accordance with Scheme for Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993. ...