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FEMA

Foreign Currency Convertible Bond

A type of convertible bond issued by Indian companies in foreign currency to overseas investors. Combines features of debt (fixed interest) and equity (conversion option). Governed by FEMA and RBI ECB framework.

Last updated: 17 May 2026

Frequently Asked Questions

What is Foreign Currency Convertible Bond?

A type of convertible bond issued by Indian companies in foreign currency to overseas investors. Combines features of debt (fixed interest) and equity (conversion option). Governed by FEMA and RBI ECB framework.

What is the significance of Foreign Currency Convertible Bond under FEMA?

Foreign Currency Convertible Bond is significant under FEMA because A type of convertible bond issued by Indian companies in foreign currency to overseas investors. Combines features of debt (fixed interest) and equity (conversion option). Governed by FEMA and RBI ECB framework.

Who does Foreign Currency Convertible Bond apply to?

Foreign Currency Convertible Bond under FEMA applies to companies, professionals, and individuals involved in FEMA-related compliance and regulatory matters in India. Specifically: A type of convertible bond issued by Indian companies in foreign currency to overseas investors. Combines features of debt (fixed interest) and equity...

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