FEMA1 min read
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 (FAQs)🔗
Q1. What is Foreign Currency Convertible Bond in Indian corporate law?▼
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.
Q2. Why is Foreign Currency Convertible Bond important for compliance?▼
Foreign Currency Convertible Bond is governed by the Foreign Exchange Management Act, 1999 and regulated by RBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Foreign Currency Convertible Bond?▼
Foreign Currency Convertible Bond is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with FEMA regulatory matters in India.
Contextual Analysis & Regulatory Updates🔗
Read our latest analysis and critical updates on corporate circulars related to FEMA:
RBI Issues Foreign Exchange Management (Deposit) Sixth Amendment Regulations, 2026 — SNRR Account Norms Eased
Published: 30 June 2026
RBI Withdraws 732 Defunct FEMA Circulars Under Regulatory Rationalisation Drive (A.P. DIR Series Circular No. 18, 2026)
Published: 25 June 2026
FEMA 395(4)/2026-RB: NRI/OCI Investment Payment Rules Amended — NRO Accounts Permitted for NPS, Designated Rupee Account Mandated
Published: 23 June 2026