Examples of Off-Shore Bonds:

Foreign Currency Convertible Bonds (FCCB):

Foreign Currency Convertible Bonds are offshore Quasi-debt instruments.
The principal and interest in respect of bond is payable in foreign currency.
The issuer is able to convert the bond into stock at a pre-determined conversion rate at which the issuer is granted a certain number of shares.
The coupon rates on FCCB’s are generally lower than bank interest rates, reducing the cost of debt financing.
On conversion debt into equity, the debt of company is reduced.

Foreign Currency Exchangeable Bonds are offshore Quasi-debt instruments.
These debts are unique in the sense that these debt are exchangeable into equity shares of another company which is called the Offered Company.
The Issuing Company and the Offered Company of an FCEB need to be a part of the same promoter group.
The Issuing Company should compulsorily hold the equity shares of the Offered Company at the time of issuance of the FCEB until redemption or exchange of these bonds.

RBI in 2022 introduced the VRR which enables FPIs to invest in debt markets in India.
VRR exempts FPIs from certain macro-prudential and other regulatory prescriptions.
However, VRR imposes a minimum retention period of three years and the requirement to invest 25% of the committed portfolio size within one month and the remaining amount within three months from the date of allotment.

Portfolio Investment Scheme (PIS) is an instrument for Non-Resident Indians (NRIs) to invest in Indian stocks and bonds.
NRE / NRO Account of an NRI is pre -requisite for PIS.
There is a ceiling on the number of particular shares in your portfolio investment and the thresholds are set up by RBI and monitored daily.
PIS can-not engage in the business of chit funds, agricultural or plantation activities, real estate business related to agricultural or farmland, construction of farmhouses, etc.
NRIs are not permitted to carry out any intraday trading or short selling of shares.