Wednesday, July 30, 2008

Foreign currency convertible bonds (FCCBs)

Primarily FCCBs have a fixed tenure, they are convertible on the
option of the issuer or investor, as the case may be and are either
interest-bearing or in case they are interest-free or low rate, a
premium on redemption is payable if not converted. Its a debatable issue whether the FCCBs are to classified as Debentures or not.

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