Foreign Currency Convertible Bonds issuance subject to prescribed eligibility, structural, cost, use-of-proceeds, and reporting requirements. Schedule II establishes an automatic-route regime for FCCB issuance requiring conformity with Foreign Direct Investment policy and Reserve Bank rules; permitting public issues through reputable lead managers or private placements only with specified recognised institutional or qualifying foreign equity investors; prohibiting warrants and unrecognised-source placements; imposing a minimum maturity before early exercise; restricting use of proceeds (excluding stock market investment) and allowing limited retention abroad for import or capital expenditure with Reserve Bank approval; prescribing all-in-cost components and caps on issue expenses; and mandating post-issue reporting to the Reserve Bank with investor and repatriation details.
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Provisions expressly mentioned in the judgment/order text.
Foreign Currency Convertible Bonds issuance subject to prescribed eligibility, structural, cost, use-of-proceeds, and reporting requirements.
Schedule II establishes an automatic-route regime for FCCB issuance requiring conformity with Foreign Direct Investment policy and Reserve Bank rules; permitting public issues through reputable lead managers or private placements only with specified recognised institutional or qualifying foreign equity investors; prohibiting warrants and unrecognised-source placements; imposing a minimum maturity before early exercise; restricting use of proceeds (excluding stock market investment) and allowing limited retention abroad for import or capital expenditure with Reserve Bank approval; prescribing all-in-cost components and caps on issue expenses; and mandating post-issue reporting to the Reserve Bank with investor and repatriation details.
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