Jain Motors Ltd. wishes to raise US $ 400 million through Foreign Currency Convertible Bonds (FCCBs) via public issue from international market in the financial year 2019-20. Advise the company in accordance with the rel
CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · June 2019
Jain Motors Ltd. wishes to raise US $ 400 million through Foreign Currency Convertible Bonds (FCCBs) via public issue from international market in the financial year 2019-20. Advise the company in accordance with the relevant provisions of the law on the following issues : (i) Whether the raising of fund of US $ 400 million is permissible ?
Answer & Explanation:
The issue of FCCBs shall be subject to a ceiling of US $ 500 million in anyone financial year. In the present case, the company is allowed to raise US $ 400 million in 2019-20 as it is within the prescribed limit.
Topics: SEBI (ICDR) Regulations, 2018
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