What do you mean by Foreign Currency Exchangeable Bonds (FCEB)? Explain the pricing norms for issuing of FCEB under the Foreign Currency Exchangeable Bonds Scheme, 2008.

Indian promoters can raise money abroad by issuing foreign currency bonds against the value of their investments in shares of listed groups company, termed as Foreign Currency Exchangeable Bonds (FCEB). The issue of these bonds helps the promoter to meet the financing requirements within the group. Issue of FCEBs are governed by Foreign Currency Exchangeable Scheme, 2008 issued by Ministry of Finance, Department of Economic Affairs. According to the "Issue of Foreign Currency Exchangeable Bonds (FCEBs) Scheme, 2018, FCEB means: a bond expressed in foreign currency. the principal and the interest in respect of which is payable in foreign currency. issued by an issuing company, being an Indian company. subscribed to by a person resident outside India. Exchangeable into equity shares of another company, being Offered Company in any manner. Pricing of Foreign Currency Exchangeable Bonds (FCEBS) At the time of issuance of FCEB the exchange price of the offered listed equity shares shall not be less than the higher of the two:- (i) the average of the weekly high and low of the closing prices of the shares of the offered company quoted on the stock exchange during the six months. (ii) the average of weekly high and low of the closing prices of the shares of the offered company quotes on a stock exchange during the two weeks preceding the relevant date.