Multiple choice

Which of the following are issued in foreign currency, and are equity linked debt securities that are to be converted into equity or depository receipts after a specific period?

  1. GDR's

  2. ADR's

  3. FCCB's

  4. Debentures

  5. CP

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Foreign currency convertible bonds are equity linked debt securities that are to be converted into equity or depository receipts after a specific period. Thus, a holder of FCCB has the option of either converting them into equity shares at a predetermined price or exchange rate, or retaining the bonds.