Monday, April 21, 2008

What are the tax provisions governing FCEBs?

FCEB: The new `bond' on Mint Street

The name of the new `bond' on the Mint Street is FCEB or the `foreign currency exchangeable bond'. Recently notified by the Finance Ministry, the FCEB Scheme, 2008, enables Indian promoters to unlock value in their group companies, without immediate dilution of voting power or control in such companies, explains Mr Rakesh Dharawat, Executive Director, Tax and Regulatory Services in PricewaterhouseCoopers, Mumbai.
"The unique and flexible nature of FCEB has generated a lot of interest among large Indian corporate houses looking to raise funds overseas, for acquisitions or greenfield projects," he adds, during the course of an e-mail interaction with Business Line.


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