Eligibility for convertible bond issuance requires prior finance ministry permission and a multi-year record of consistent performance. An issuing company must obtain prior permission from the Department of Economic Affairs to issue Foreign Currency Convertible Bonds or ordinary shares ... Summary
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Eligibility for convertible bond issuance requires prior finance ministry permission and a multi-year record of consistent performance.
An issuing company must obtain prior permission from the Department of Economic Affairs to issue Foreign Currency Convertible Bonds or ordinary shares through the Global Depositary Receipt mechanism; eligibility requires a consistent multi-year track record and final Departmental approval of the issue structure after consultation with the Lead Manager. Bonds are denominated in convertible foreign currency and shares in Indian rupees. Shares or bonds must be delivered to a Domestic Custodian Bank to enable issuance of Global Depositary Receipts by an Overseas Depositary Bank, which may be negotiable and listed abroad. Applicable capital-issue laws and required permissions or exemptions must be observed.
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