Global depository receipts gdr and convertible bonds. Issue of foreign currency convertible bonds and ordinary. For example, as defined by the issue of fccb and ordinary shares through depository receipt mechanism scheme 1993 of india fccbs are bonds issued in accordance with the scheme and subscribed by a non resident in foreign currency and convertible into ordinary shares of the issuing company in any manner, either in whole or in part, on. Revisionsmodifications in the operative guidelines of the scheme have been made from time to time. As per the new scheme, a regulated entity having the legal capacity to issue drs i. The 1993 scheme stands repealed to the extent that it applies to drs. We use your linkedin profile and activity data to personalize ads and to show you more relevant ads. Amendment to the issue of foreign currency convertible. Issue of fccbs and ordinary shares through depository receipt mechanism scheme, 1993 amended. A scheme for issue of foreign currency convertible bonds and ordinary shares through depositary receipt mechanism scheme was notified in 1993 to allow the indian corporate sector to access global capital markets through issue of foreign currency convertible bonds fccbequity shares under the global depository receipt mechanism gdr and. Issue of foreign currency convertible bonds and ordinary shares through depository receipt mechanism scheme, 1993. A scheme for issue of foreign currency convertible bonds and ordinary.
Elara capital plc, london was thesole lead manager and book runner for issue. The latest comprehensive guidelines on the issue of. An overview of fccbs a special bond issued by indian. There are following differences between fccbs and fcebs. Issue of fccb and ordinary shares through depository receipt mechanism scheme 1993 amended. Issue adrsgdrs if eligible in terms of the scheme for issue of fccb and os through dr scheme, 1993 and guidelines issued by mof, goi co. Act to the issue of foreign currency convertible bonds fccbs and. Scheme, 1993 1993 scheme focussed on offshore listings it allowed indian firms to issue depository receipts offshore against their domestic equity shares onshore. Mechanism scheme, 1993 scheme and reserve bank of india. Fccbs are issued in accordance with the foreign currency convertible bonds and ordinary shares through depository receipt mechanism scheme 1993 and subscribed by a nonresident entity in foreign currency and convertible into ordinary shares of the issuing company in any manner, either in whole, or in part. Fccb hold an option to convert into shares or redeem the bonds fccb holders filed winding up petition.
Issue of fccbs and ordinary shares scheme 1993 free download as word doc. Issue of fccbs and ordinary shares through depository receipt. Issue of shares by indian companies under fccbadrgdr. Indian companies can raise foreign currency resources abroad through the issue of adrsgdrs, in accordance with the scheme for issue of foreign currency convertible bonds and ordinary shares through depository receipt mechanism scheme, 1993 and guidelines issued by the central government thereunder from time to time. Indian company may sponsor an issue of adrsgdrs with an overseas depository against shares held by its shareholders at a price to be determined by the lead manager, subject to compliance with provisions of the issue of foreign currency convertible bonds and ordinary shares through depository receipt mechanism scheme, 1993 and guidelines. The essential difference between an fccb and fceb lies in their convertibility whereby in the case of an fccb offering, the bonds convert into shares of the company that issued the bonds, while in the case of an fceb offering, the bonds are convertible into shares not of the issuer company, but that of another company forming part of. The aforesaid circular50 further lays down that these foreign currency convertible bonds are required to be issued in accordance with the scheme viz. Share premium cannot be regarded as part of the issued. Issue of foreign currency convertible bonds and ordinary shares. After amendment overseas listing ahs been delinked from domestic listing subject to conditions in the circular. Scheme, 1993, and subscribed by a nonresident in foreign currency and convertible into ordinary shares of the. A scheme for issue of foreign currency convertible bonds and ordinary shares through depository receipts mechanism was notified in 1993 to allow the indian corporate sector to access global capital markets through issue of foreign currency convertible bonds fccbs equity shares under the global depository receipt mechanism gdr and american depository receipt mechanism adr.
The fceb must comply with the issue of foreign currency exchangeable bonds fceb scheme, 2008, notified by the government of india, ministry of finance, department of economic affairs vide notification g. A list of all fccb issues by indian firm from 20022012 was obtained from cmie prowess. Nbvl issued the fccbs on september 29, 2006, under the issue of foreign currency convertible bonds and ordinary shares through depositary receipt mechanism scheme, 1993 fccb scheme to lehman brothers. A foreign currency convertible bond fccb is a type of convertible bond issued in a currency different than the issuers domestic currency. Scheme, 1993, and subscribed by a nonresident in foreign. Foreign currency convertible bond fccb is a convertible bond issued by a country in a currency different than the its own currency. Any indian company listed or unlisted, public or private or any other issuer of permissible securities or any person holding such securities can issue drs. Fccbs stand unique compare to ordinary convertible bonds because it is to be issued in foreign currency and subscribed by the foreign investors.
Through depository receipt mechanism scheme, 1993, as amended is inr 87. Fccb is an acronym for foreign currency convertible bonds. The issuance of the fccb is subject to the fulfillment of. Unlisted companies were not allowed to access overseas listing without simultaneous domestic listing. Gati announces successful closing of its fccb issue. Unlisted companies allowed to issue adrs gdrs without the. Issue of fccbs and ordinary shares through depository. Issue of fccbs and ordinary shares scheme 1993 capital gains. The issue of fccbs is primarily regulated by the issue of foreign currency convertible bonds and ordinary shares through depository receipt mechanism scheme, 1993 the fccb scheme issued by the government and the foreign exchange management transfer or issue of any foreign security regulations, 2000, as amended the bond. Issue of foreign currency convertible bonds and ordinary shares through depository receipt mechanism scheme, 1993, as amended or restated fccb scheme, the securities and exchange board of india issue of capital and disclosure requirements regulations, 2009, as. The present scheme governing the issue of depository receipts drs was designed in 1993 through rbis foreign currency convertible bonds and ordinary shares through depositary receipt mechanism scheme, 1993. Fcebs should be issued in accordance with the issue of foreign currency exchangeable bonds scheme, 2008. Fccb governed through rbi fccb guidelines were issued in 1993 by ministry of finance under the issue of foreign currency convertible bonds and ordinary shares through depository receipt mechanism scheme, 1993.
Issues and challenges in foreign currency convertible. Fccb foreign currency convertible bonds one kind of security bond is issued by indian company expressed in foreign currency ie, principle and interest on such security is payable in foreign currency to be issued under accordance with the foreign currency convertible bonds and ordinary shares through depository mechanism scheme 1993 subscribed by non. A scheme for issue of foreign currency convertible bonds and ordinary shares through depositary receipt mechanism scheme was notified by the government of india on 12 th november, 1993. Convertible bonds and ordinary shares through depository receipt mechanism scheme, 1993. Short note on issue of foreign currency exchangeable bonds. Through depositary receipt mechanism scheme, 1993 scheme.
A scheme for issue of foreign currency convertible bonds and ordinary shares through depository receipts mechanism was notified in 1993 to allow the indian corporate sector to access global capital markets through issue of foreign currency convertible bonds. A scheme for issue of foreign currency convertible bonds and ordinary shares through depositary receipt mechanism scheme was notified in 1993 to allow the indian corporate sector to access global capital markets through issue of foreign currency convertible bonds fccb equity shares under the global depository receipt mechanism gdr and american depository receipt mechanism adr. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. There the meaning of fccb is given as bonds issued in accordance with the said scheme and subscribed by a nonresident in foreign currency and convertible into ordinary shares of the issuing company in any manner, either in whole, or in part, on the basis of any equity related warrants attached to debt instruments. Enewsline nnn february 2007 disclaimer this newsletter is for information purposes and should not be construed as legal advice. A scheme for issue of foreign currency convertible bonds and ordinary shares through depositary receipt mechanism scheme was notified in 1993 to allow the indian corpo rate sector to access global capital markets through issue of foreign currency convertible bonds fccbs equity shares under the global depository receipt mechanism gdr. This was a time when indias capital market was substantially closed to foreign market. A scheme for issue of foreign currency convertible bonds and ordinary shares through depositary receipt mechanism scheme was notified by the government of india on 12th november, 1993. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. Proceeds from the issue were used to part finance an addition of 675mw capacity total at 775mw to the captive power generation of the company. Scheme means the foreign currency convertible bonds and ordinary shares. Fccb regulatory mechanism ecb guidelines governs fccbs the bonds are required to be issued in accordance with the scheme viz. Fccbs and ordinary shares through depository receipt mechanism scheme. Ministry of finance government of india november, 20.
Theyre basically bonds which are linked to the equity of a company and theyre denominated in a foreign currency almost always in usd. The notification has amended the regulation 31b of the scheme to permit indian unlisted companies to issue gdrs fccbs without having to fulfill the requirement of a simultaneous domestic listing. Gati announces successful closing of its fccb issue hyderabad december 12, 2011. Green shoe option of usd10 millionwas exercised,taking the total issue to 60. Through depository receipt mechanism scheme, 1993 or any modification or.
1269 1085 253 765 1247 720 1372 791 140 988 1377 903 386 931 627 1243 506 1514 1393 1078 106 721 131 59 1391 1339 13 643 1223 1413 928