Regulation for Raising Fccb's

Subject: Global Capital Markets - Regulation for raising FCCB.

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Foreign Currency exchangeable Bonds be attractive to twain investors and issuers. The investors receive the safety of guaranteed payments on the bond (if interest payment is involved) and atomic number 18 as well able to subscribe advantage of whatever price appreciation in the comp whatsoevers stock. Bondholders take advantage of this appreciation by means of warrants attached to the bonds, which are activated when there is substantial price appreciation of the stock. receivable to the equity side of the bond, the coupon payments on the bond are lower, thereby reducing its debt financing costs for the issuer.

FCCB are also referred as FCCN (Foreign Currency Convertible Notes) by some issuers. Bonds of extraneous countries are called by various names in foreign markets. For example in US, everywhereseas bond listed with SEC are called Yankee Bonds, while they are referred to as Bulldog Bonds (in U.K.) and Samurai Bonds (in Japan).


Overview:

cost-efficient uppercase markets are a critical component for any developed economy and Indian capital markets today are amongst the best regulated markets wherein the regulatory framework has kept thou with the significant growth in the securities markets.



The story of Indian capital markets reveals an efficient trading and settlement infrastructure, high levels of disclosure and gentility an environment of innovation. In this back drop, Foreign Currency Convertible Bond (FCCB) is emerging as a preferred doer for corporate financing with large number of FCCBs being issued over the past few years.


Regulations:

The FCCB guidelines were first issued in 1993, by the finance Ministry under the Issue of Foreign Currency Convertible Bonds and mean(a) Shares (Through Depositary Receipt Mechanism) Scheme, 1993, which has been revised and relaxed several times. By 2003, the right to wonder FCCB borrowings was delegated to the central bank, the RBI under FEMA regulations,...If you want to get a full essay, order it on our website: Ordercustompaper.com



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