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FCCB

Foreign Currency Convertible Bonds are foreign-currency bonds issued by Indian companies that can convert into equity.

FCCBs expose the issuer to foreign-exchange movements until conversion or redemption.

Conversion terms link the bond to a fixed number of shares or a formula-based price.

Regulatory approvals and end-use conditions apply under Indian external commercial borrowing related frameworks.

Dilution occurs if holders convert into equity rather than redeeming for cash.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.