State any five features of FCCB.

1.	State any five features of FCCB.
Answer» 1. FCCB is issued by an Indian company in foreign currency. 2. These are listed and traded in foreign stock exchange and similar to the debenture. 3. It is a convertible debt instrument. It carries interest coupon. It is unsecured. 4. It gives its holders the right to convert for a fixed numbers of shares at a pre – determined price. 5. It can be converted into equity or depository receipt after a certain period.

Answer»

1. FCCB is issued by an Indian company in foreign currency.

2. These are listed and traded in foreign stock exchange and similar to the debenture.

3. It is a convertible debt instrument. It carries interest coupon. It is unsecured.

4. It gives its holders the right to convert for a fixed numbers of shares at a pre – determined price.

5. It can be converted into equity or depository receipt after a certain period.

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