Foreign Currency Convertible Bonds issued by Indian companies in foreign currency are ________ written documents which can not or may not be the option of coupon and basic payment. 

The Correct answer is Semi-loan.

Key Points

• Foreign Currency Convertible Bonds (FCCBs) are a type of debt instrument issued by companies in a currency different from their home currency.
• They are considered semi-loan because they combine features of both debt and equity.
• FCCBs give the holder the option to convert them into a pre-determined number of equity shares of the issuing company.
• This instrument is useful for companies seeking to raise capital in foreign markets.
• The coupon (interest) and principal (basic payment) of FCCBs are paid in foreign currency.
• Companies prefer FCCBs as they often carry lower interest rates compared to traditional loans.
• Investors are attracted to FCCBs due to the potential for capital appreciation if the company’s stock performs well.

 Additional Information

• Semi-Deposit
  • This term is generally not used in financial terminology.
  • Deposits usually refer to money placed in a bank or financial institution.
• Current Deposit
  • Current deposits are typically associated with accounts that allow for frequent transactions.
  • They are not related to the concept of bonds or convertible instruments.
• Future Loan
  • This term is also not commonly used in financial contexts.
  • Loans are typically classified as either short-term or long-term, not future loans.