Into which of the following can FCEB (Foreign Currency Exchange Bond) be exchanged?

Options

A. 1.Shares of Issuing company
B. 2.A foreign country
C. 3.Debt instruments
D. 4.Equity shares of Offered Company

Answer

D

Explanation

Regulation 2(s) of Foreign Exchange Malnagement (Transfer or Issue of any Foreign Security) (Second Amendment) Regulations, 2009 defines Foreign Currency Exchangeable Bond (FCEB) means 'a bond expressed in foreign currency the principal and Interest in respect of which is payable foreign currency, issued by an Issuing Company and suscribed to by a person who Is a resident outside india, in foreign currency and exchangeable Into equity share of another company, to be called the Offered Company. In any manner, either wholly or partly or on the basis of any equity related warrants attached to debt instruments. The FCEB may be denominated in any freely convertible foreign currency'.