RBI guidelines on FCEBs

The RBI is likely to come out with guidelines on Foreign Currency Exchangeable Bonds (FCEBs) within a month, a move that would give corporate more options to raise money from overseas markets.FCEBs are financial instruments similar to Foreign Currency Convertible Bonds (FCCBs) in nature and allow corporate to raise money by issuing bonds.While funds raised through FCEBs cannot be invested in capital markets and real estates in the domestic market, corporate will be able to use the funds for their operations overseas.