Who can issue FCCB in India?
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.
Who can issue FCCB?
29 dated March 11, 2002 allowing an Indian company or a body corporate, created by an Act of Parliament, to issue FCCBs under the automatic route without the approval of Government or the Reserve Bank. 2.
Who can invest in FCCB?
Foreign currency convertible bonds are typically issued by multinational companies operating in a global space and looking to raise capital in foreign currencies. FCCB investors are usually hedge fund arbitrators and foreign nationals.
How are FCCB issued?
FCCBs are bonds issued by listed companies in the overseas market. FCCBs pay interest at a nominal rate. Starting out as bonds, FCCBs usually carry clauses which allow the issuer or bondholder the option to convert the bonds into shares mid-way during its term, at a pre-agreed price.
Who is not eligible for LRS?
The Scheme is not available to corporates, partnership firms, HUF, Trusts, etc. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions. The scheme started with LRS limit of USD 25,000 on 4-2-2004.
Who are close relatives under LRS?
The Reserve Bank of India (RBI) has narrowed the definition of relatives to check the flow of funds under the category of ‘maintenance of close relative’ of the LRS. Hence, funds can be sent only to immediate relatives such as parents, spouses, children and their spouses.
Can individuals take ECB?
Yes, as long as the ECBs are in compliance with the ECB guidelines for the respective currencies as per RBI guidelines. The individual limit will include all ECBs raised, whether in foreign currency or INR.
What are ECB formalities?
PROCEDURE. 1. Applicants are required to submit an application in form ECB through designated AD bank to the Principal Chief General Manager, Foreign Exchange Department, Reserve Bank of India, Central Office, External Commercial Borrowings Division, Mumbai – 400 001, along with necessary documents. 2.
What are the advantages of FCCB?
Benefits of FCCBs The coupon rates on FCCB’s are generally lower than traditional bank interest rates, reducing the cost of debt financing. If converted, the company is able to reduce its debt as a result of foreign currency convertible bonds and thus gains additional, much-needed equity capital.
What is LRS declaration form?
Under the Liberalised Remittance Scheme (LRS), the Indian government and the Reserve Bank of India (RBI) now require an LRS Declaration form (fully titled “A2 cum LRS Declaration”) to transfer funds abroad. If you select to pay via “Domestic Bank Transfer in INR”, you are required to fill out and submit this form.
Can NRI use LRS?
All Indian residents are permitted to repatriate funds overseas or spend overseas under the Liberalized Remittance Scheme (LRS) up to $250,000 per year. Non-resident Indians (NRIs) or Overseas Citizens of India (OCIs) are allowed to repatriate up to $1 million per year, besides their current incomes.
Who is close relative in India?
Brother or Sister of either of the parents of the individual; Any lineal ascendant or descendant of the individual; Any lineal ascendant or descendant of the spouse of the individual; Spouse of the person referred to in clauses (2) to (6);
Is LRS applicable for credit cards?
Ans. Yes, LRS is in addition to use of International Credit Card. There is no monetary ceiling fixed by RBI for remittances by use of International Credit Card towards meeting expenses while such person is on a visit outside India.
What is minimum average maturity period in ECB?
10 years
For repayment of Rupee loans availed domestically for purposes other than capital expenditure and for on-lending by NBFCs for the same, the minimum average maturity period of the ECB is required to be 10 years.
How many types of ECB are there?
Track III: Indian Rupee (INR) denominated ECB with minimum average maturity of 3/5 years. The 7 forms of ECBs are buyer’s credit, supplier’s credit, financial lease, FCCBs, FCEBs, loans including bank loans, and securitized instruments.
Is FCCB a FDI?
Similarly FCCBs are foreign currency convertible Bonds invested in Indian company. Since these bonds are convertible in to equity shares over a period of time as provided in the instrument, therefore they are covered under FDI policy.
What is the difference between FCCB and Fceb?
What is the difference between an FCCB and an FCEB? The main difference is that in FCCBs the bonds convert into shares of the company that issued the bonds. Whereas in FCEBs, the bonds are exchangeable for shares of another company, i.e., the Offered Company.
Is father-in-law a relative?
(3) “relative” means, with respect to a public official, an individual who is related to the public official as father, mother, son, daughter, brother, sister, uncle, aunt, first cousin, nephew, niece, husband, wife, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather.