BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Foreign currency convertible bonds
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Forex currency convertible bonds
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Form currency convertible bonds
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Future currency convertible bonds
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Detailed explanation-1: -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.
Detailed explanation-2: -What Is a Foreign Currency Convertible Bond? 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.
Detailed explanation-3: -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.
Detailed explanation-4: -FCCB stands for foreign currency convertible bond. It is a type of convertible bond that is issued in a currency different than the issuer’s domestic currency. In other words, the issuing company raises money in the form of foreign currency.
Detailed explanation-5: -. In the case of FCCBs, the bonds convert into shares of the company that issued the bonds, while in the case of FCEBs, the bonds are exchangeable for shares in another company – ie the offered company.