Question

Many times we read in the newspaper that several companies are adopting the FCCBs route to raise capital. What is the full form of FCCB?

• A. Foreign Currency Convertible Bonds
• B. Foreign Convertible Credit Bonds
• C. Financial Consortium and Credit Bureau
• D. None of these

Answer 1

The Correct Option is A

To understand the acronym FCCB, let's break down the options provided:

• Foreign Currency Convertible Bonds (FCCBs): These are a type of financial instrument that companies use to raise capital. They are essentially bonds issued in a currency different from the issuer's home currency, and they have the feature of being converted into equity shares of the issuing company at certain times during their life, usually at the discretion of the bondholder.
• Foreign Convertible Credit Bonds: While similar in wording, this term is not commonly recognized in financial contexts and does not represent the standard definition of FCCB.
• Financial Consortium and Credit Bureau: This does not relate to FCCBs as it pertains to a different financial entity concept.
• None of these: Given that one of the options correctly describes FCCBs, this option is not applicable.

Based on these explanations, the full form of FCCB is: Foreign Currency Convertible Bonds.