Thank you so much bhai

Overseas

If we take the above example, what will happen is: First, an Indian company would approach and issue its FCCBs in the foreign exchange market In return, they'll receive money in the form of USD or any other currency say for example $1 Million. To use that money in India, they must convert it in INR & use it for XYZ purpose f the business. Meanwhile, in the US, the owner of the FCCB can sell or trade it to anyone else in the exchange. That is completely his lookout for what to do with the FCCB. For example, Mr Bill sells it to Mr Joe at XYZ price, so now Mr Joe is the new owner. Once the tenure of FCCB say for example 10 years is completed, the Company will have to pay the complete FCCB amount (at which it was sold the first time to Mr Bill i.e. $1Million OR Sell the agreed number of shares as per Joe's will. To pay back the money, the company will have to first convert the INR into USD & then pay Mr Joe. But just imagine the price. While borrowing the money, the business got: 2010: 1 dollar = Rs.45 i.e. $1M = Rs.45 Million (Borrowed) While paying back: 2020: 1 USD = Rs.75 i.e. Rs.75 Million (will have to Paid back) This currency risk is just one of the very huge risks of the instrument.