The bull run witnessed by the Indian stock markets has seen a number of issuers raise funds through Foreign Currency Convertible Bonds (FCCBs).
The term FCCBs has been defined in the FCCB Scheme to mean bonds issued in accordance with the Scheme and subscribed by a non-resident in a foreign currency and convertible into ordinary shares of the issuing company, either in whole or in part, on the basis of any equity-related warrants attached to debt instruments.
FCCBs are hybrid instruments, essentially a debt, that is (optionally) convertible into equity.
Sanjay Asher is a partner with Crawford Bayley & Co, Prerak Ved is an associate.
Crawford Bayley & Co
State Bank Buildings
N.G.N. Vaidya Marg
Fort, Mumbai – 400023
Tel: +91 22 2266 3713 Ext: 177/ 178
Fax: +91 22 2266 3978