The Indian Inc. now has one more option to raise foreign capital by issuing Foreign Currency Exchangeable Bonds (FCEB’s). This Finance Bill 2008 unlocked another foreign funds route for India Inc. Earlier the Indian companies had mainly External Commercial Borrowing (ECB) and Foreign Currency Convertible Bonds (FCCB’s) to raise capital from foreign investors apart from some other hybrid instruments like CARS (Convertible Alternate Reference Security) etc. The government of India has given the companies a new scope to raise money in this Finance Act of 2008. The Ministry of Finance (MOF) notified that Indian companies would be permitted to raise funds abroad by issuing Foreign Currency Exchangeable Bonds (FCEB), the MOF has now published the Issuance of Foreign Currency Exchangeable Bonds Scheme 2008 (FCEB Scheme). FCEBs are defined as bonds expressed in foreign currency and in which the principal and interest are payable in foreign currency only. The bonds are de ....