Globlisation has changed the world in a single business village. Now business entities are expanding their business to almost every country. Gone the time where capital requirement can be fulfilled through their home economies only.Now a days business entities can raise funds from international markets as well.
Indian companies are also not behind in this race. They can also raise funds from international markets. Reliance, Infosys are one of the first for such step to raise funds from international market. The Government of India has taken various policies initiatives to allow India companies to raised funds from International Market.Indian companies are allowed to raise equity capital in the international market through the issue of GDR/ADR/FCCB/FCEB.
Although it is a footstep of Indian entities into a global economy, still this fund raising is governed by various rules and regulation by Indian Government and the other country(including stock exchange and security market regulator) in which these instruments are going to be issued.
Here is a quiz on fund raising through international market to test your knowledge!