What is procedure of issuing Foreign Currency Convertible Bonds?

A.  For listed companies

• Any Indian company not eligible to raise funds from the Indian capital market or restrained from accessing securities market by SEBI is not eligible to issue FCCB
• Erstwhile Overseas Corporate Bodies not eligible to invest in India through portfolio and entities prohibited to buy, sell or deal in securities by SEBI are not eligible to subscribe to FCCB
• Pricing of GDR/ FCCB should not be less than the higher of either average of weekly high and low of closing prices of related shares for six months preceding the relevant date or average of weekly high and low of closing prices of related shared for two weeks preceding the relevant date
• The voting rights shall be as per the provisions of The Companies Act 2013

B. For unlisted companies

• Companies which have not yet accessed GDR/ FCCB route for raising capital in international market need to get listed in the domestic market
• Companies which have already issued GDR/ FCCB in the international market would now require listing in the domestic market on making profit beginning 2005-06 or within 3 years of such issue