Foreign Currency Convertible Bonds (FCCBs) are bonds issued by Indian companies in foreign currency to raise resources abroad, which can be converted into equity shares at a later date.
Source: Foreign Capital Issuance, Chapter 3
The examiner expects a one-line definition covering two key points: (1) it is a bond issued in foreign currency, and (2) it is convertible (into equity). The passage mentions FCCBs as one of two ways Indian companies raise foreign currency resources. Keep it concise for 1 mark.