Distinguish between Foreign Currency Convertible Bonds (FCCBs) and Global Depository Receipts (GDR).

Foreign Currency Convertible Bonds (FCCBs): 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. The bonds are required to be issued in accordance with the scheme viz., "Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme, 1993", and 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. FCCBs are issued in accordance with the Foreign Currency Convertible Bonds and Ordinary Shares (through depository receipt mechanism) Scheme 1993. Global Depository Receipts (GDR): As per Section 2(44) of the Companies Act, 2013 "Global Depository Receipt" means any instrument in the form of a depository receipt, by whatever name called, created by a foreign depository outside India and authorised by a company making an issue of such depository receipts. According to Section 41 of Companies Act, 2013, a company may, after passing a special resolution in its general meeting, issue depository receipts in any foreign country in such manner, and subject to such conditions, as may be prescribed. GDRs have access usually to Euro market and US market. The US portion of GDRs to be listed on US exchanges should comply with SEC requirements and the European portion is to comply with EU directive.