Schedule I - Regulation 21(2)(i) - Automatic Route for Issue of Foreign Currency Convertible Bonds (FCCBs) - Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004

Schedule I See Regulation 21(2)(i) Automatic Route for Issue of Foreign Currency Convertible Bonds (FCCBs) (i) The FCCBs to be issued will have to conform to the Foreign Direct Investment Policy (including Sectoral Cap and Sectors where FDI is permissible) of the Government of India as announced from time to time and the Reserve Bank's Regulations/directions issued from time to time. (ii) The issue of FCCBs shall be subject to a ceiling of 1 [ USD 750 Million ] in any one financial year. (iii) Public issue of FCCBs shall be only through reputed lead managers in the international capital market. In case of private placement, the placement shall be with banks, or with multilateral and bilateral financial institutions, or foreign collaborators, or foreign equity holder having a minimum holding of 5% of the paid up equity capital of the issuing company. Private placement with unrecognized sources is prohibited. (iv) The maturity of the FCCB shall not be less than 5 years. The call put option, if any, shall not be exercisable prior to 5 years. (v) Issue of FCCBs with attached warrants is not permitted. (vi) The all in cost will be on par with those prescribed for External Commercial Borrowing (ECB) schemes specified in the Schedule to Notification No: FEMA 3/2000-RB dated 3rd May 2000. The all in cost shall include coupon rate, redemption premium, default payments, commitment fees, and fronting fees, if any, but shall not include the issue related expenses such as legal fees, lead managers fees, out of pocket expenses. (vii) The FCCB proceeds shall not be used for investment in Stock Market, and may be used for such purposes for which ECB proceeds are permitted to be utilized under the ECB schemes. (viii) FCCBs are allowed for corporate investments in industrial sector, especially infrastructure sector. Funds raised through the mechanism may be parked abroad unless actually required. (ix) FCCBs for meeting rupee expenditure under automatic route to be hedged unless there is a natural hedge in the form of uncovered foreign exchange receivables, which will be ensured by Authorised Dealers. (x) Financial intermediaries (viz. a bank, DFI, or NBFC) shall not be allowed access to FCCBs, except those Banks and financial intermediaries that have participated in the Textile or Steel Sector restructuring package of the Government/RBI subject to the limit of their investment in the package. (xi) Banks, FIs, NBFCs shall not provide guarantee/letter of comfort etc. for the FCCB issue. (xii) The issue related expenses shall not exceed 4% of issue size and in case of private placement, shall not exceed 2% of the issue size. (xiii) The issuing entity shall, within 30 days from the date of completion of the issue, furnish a report to the concerned Regional Office of the Reserve Bank of India through a designated branch of an Authorized Dealer giving the details and documents as under : a. The total amount of the FCCBs issued, b. Names of the investors resident outside India and number of FCCBs issued to each of them. ------------------------ Notes:- 1. Substituted vide Notification No. FEMA 231/2012-RB, Dated 30-5-2012 , before it was read as:- ''USD 500 Million