Consider the following: 1. Foreign currency convertible bonds 2. Foreign institutional investment with certain conditions 3. Global depository receipts 4. Non-resident external deposits Which of the above can be included in Foreign Direct Investments?

Question

Consider the following: ​ 1. Foreign currency convertible bonds ​ 2. Foreign institutional investment with certain conditions ​ 3. Global depository receipts ​ 4. Non-resident external deposits ​ Which of the above can be included in Foreign Direct Investments? ​

CollectorBabu · Accepted Answer

Correct Answer: 1, 2 and 3 only ​. Foreign Currency Convertible Bonds (FCCBs) mean a bond issued by an Indian company expressed in foreign currency, and the principal and interest in respect of which is payable in foreign currency. They are subscribed by a non-resident in foreign currency and convertible into ordinary shares of the issuing company in any manner, either in whole, or in part, on the basis of any equity related warrants attached to debt instruments.   A Global Depository Receipt  (GDR), also known as international depository receipt (IDR), is a certificate issued by a depository bank, which purchases shares of foreign companies and deposits it on the account. Hence, Statements 1,2 and 3 are correct. NRI deposits are considered part of domestic investments.

Consider the following: 1. Foreign currency convertible bonds 2. Foreign institutional investment with certain conditions 3. Global depository receipts 4. Non-resident external deposits Which of the above can be included in Foreign Direct Investments?

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Consider the following: ​ 1. Foreign currency convertible bonds ​ 2. Foreign institutional investment with certain conditions ​ 3. Global depository receipts ​ 4. Non-resident external deposits ​ Which of the above can be included in Foreign Direct Investments? ​

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Consider the following: 1. Foreign currency convertible bonds 2. Foreign institutional investment with certain conditions 3. Global depository receipts 4. Non-resident external deposits Which of the above can be included in Foreign Direct Investments?