Who governs the issue of FCCB?

The Scheme further provides the eligibility conditions for issue of Convertible Bonds or Ordinary Shares of Issuing Company [54]: a) Obtain prior permission of the Department of Economic Affairs, Ministry of Finance, Government of India.

Is FCCB a 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.

Who can invest in FCCB?

Foreign currency convertible bonds are typically issued by multinational companies operating in a global space and looking to raise capital in foreign currencies. FCCB investors are usually hedge fund arbitrators and foreign nationals.

What is ECB and FCCB?

The Reserve Bank of India has today released the data on External Commercial Borrowings (ECB) and Foreign Currency Convertible Bonds (FCCB), both Automatic Route and Approval Route, for the month of December 2007.

What is the difference between FCCB and 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.

What is FCCB 11?

A type of convertible bond issued in a currency different from the issuer’s domestic currency is known as a foreign currency convertible bond (FCCB). A convertible bond is a mix between an equity and debt instrument. Companies issue convertible bonds to lower the coupon rate on debt and to delay dilution.

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.

Can banks issue FCCB?

Offered Company: The Offered Company shall be a listed company, which is engaged in a sector eligible to receive Foreign Direct Investment and eligible to issue or avail of Foreign Currency Convertible Bond (FCCB) or External Commercial Borrowings (ECB)….Master Circulars.

INDEX
Form ECB 28
Annex II 31
Form 83 31
Annex III 38

What is difference between FDI and ECB?

Conclusion. ECB means foreign funding which is not in the form of equity. When it is used in the form of equity capital, then it is called Foreign Direct Investment (FDI). Any Investment made towards core capital of an organisation such as equity shares, convertible preference shares or convertible debentures.

What is FCEBs?

Issue of foreign currency exchangeable bonds (FCEB) are regulated by Foreign Currency Exchangeable Bond. Scheme 2008 issued by Ministry of Finance, Department of Economic Affairs. What is FCEB? A bond expressed in foreign currency. The principal and the interest of which is payable in foreign currency.

Why it is called Masala bond?

Why is it called Masala bonds? Masala bonds are issued outside India but denominated in Indian Rupees rather than the local currency. Masala is an Indian word that means spices. The IFC used the term ‘Masala’ to evoke the cuisine and culture of India.

What is ADR GDR and FCCB?

(i) Indian companies can raise foreign currency resources abroad through the issue of FCCB/DR (ADRs/GDRs), in accordance with the Scheme for issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993 and guidelines issued by the Government of India there under …