Question

Foreign Currency Convertible Bonds more commonly known as _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ .

• A. Euro Issues
• B. American Depositary Receipt
• C. Global Depository Receipts
• D. American Depositary Shares

Hint:

FCCBs = Foreign Currency + Convertible Bonds = Euro Issues. ADRs/GDRs represent equity, not bonds. Remember: "Euro" in finance often means "international/foreign currency" not necessarily European.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
FCCBs are bonds issued in a currency different from the issuer's domestic currency that can be converted into equity.
Step 2: Detailed Explanation:
When Indian companies raise funds in the international market through instruments like GDRs or FCCBs, these are collectively known as "Euro Issues."
ADRs are specific to the US market.
FCCBs are debt instruments that give the investor the option to convert them into equity later.
Step 3: Final Answer:
(A) Euro Issues