CHARACTERISTICS OF OTHER SECURITITES

Warrants: Give investors the right to buy shares of a company in the future at a pre-determined price.
Convertible Debentures (CDs): Debt instruments that can be converted into equity shares of the company at a future date, offering features of both debt and equity.
Depository Receipts (DRs): Financial instruments representing shares of a local company, listed and traded on a stock exchange outside the country, allowing overseas investors to easily invest in a company.
Foreign Currency Convertible Bonds (FCCBs): Issued by Indian companies and subscribed to by investors in foreign currency, carrying a fixed interest or coupon rate and convertible into ordinary shares at a preferred price.
Exchange Traded Funds (ETFs) and Index Funds: Passive funds that generate returns in line with the index or benchmark, with ETFs being listed and traded on a stock exchange.
Real Estate Investment Trusts (REITs): Trusts that invest in commercial real estate assets, raising funds through an initial offer and subsequent offers.
Infrastructure Investment Trusts (InvITs): Trusts that invest in the infrastructure sector, raising funds from the public through an initial offer of units.

Key Features of Each Security

Warrants:
- Specification of the number of shares and pre-determined price at the time of issue.
- Exercised when the share price is higher than the pre-determined price.
- Subject to SEBI guidelines and shareholders' approval.
Convertible Debentures:
- Pay periodic coupon interest till redemption or conversion into equity shares.
- Details of conversion, such as date, ratio, and price, are specified at the time of issue.
- Offer advantages like lower coupon rates and no debt repayment at maturity.
Depository Receipts:
- Issued in foreign currency, usually US Dollars.
- Allow overseas investors to easily invest in a company.
- Can be converted into equity shares, depending on the country and conditions of issue.
Foreign Currency Convertible Bonds:
- Carry a fixed interest or coupon rate.
- Convertible into ordinary shares at a preferred price.
- Regulated by Reserve Bank of India (RBI) notifications under the Foreign Exchange Management Act (FEMA).
Exchange Traded Funds and Index Funds:
- Generate returns in line with the index or benchmark.
- ETFs are listed and traded on a stock exchange, while Index Funds are not.
- Offer a low-cost investment avenue to investors.
Real Estate Investment Trusts (REITs):
- Invest in commercial real estate assets.
- Raise funds through an initial offer and subsequent offers.
- Units are listed on the stock exchange.
Infrastructure Investment Trusts (InvITs):
- Invest in the infrastructure sector.
- Raise funds from the public through an initial offer of units.
- Units are listed on a stock exchange.