GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is the full form of FCCB?
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Foreign Currency Convertible Bank
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Foreign Currency Convertible Bond
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Foreign Currency Convertible Board
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Foreign Convertible Currency Board
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Explanation:
Detailed explanation-1: -Foreign currency convertible bonds (FCCBs) are a special category of bonds. FCCBs are issued in currencies different from the issuing company’s domestic currency. Corporates issue FCCBs to raise money in foreign currencies.
Detailed explanation-2: -. 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.
Detailed explanation-3: -Nature. ECB is borrowing and is thus purely debt finance. FCCB is a hybrid instrument. It is issued as a bond but later it is converted into equity. Procedure.
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