Buyback / Prepayment of Foreign Currency Convertible Bonds (FCCBs) Under APPROVAL Route

Buyback / Prepayment of Foreign Currency Convertible Bonds (FCCBs) Under APPROVAL  Route 

Approval Route

Indian companies may be permitted to buyback FCCBs up to USD 100 million of the redemption value per company, out of their internal accruals with the prior approval of the Reserve Bank, subject to a :

i) minimum discount of 10 per cent of book value for redemption value up to USD 50 million; 

ii) minimum discount of 15 per cent of book value for the redemption value over USD 50 million and up to USD 75 million; and 

iii) minimum discount of 20 per cent of book value for the redemption value of over USD 75 million and up to USD 100 million. 

4. Applications complying with the above conditions may be submitted, together with the supporting documents, through the designated AD Category - I bank, to the Chief General Manager-in-Charge, Reserve Bank of India, Foreign Exchange Department, ECB Division, Central Office, 11th Floor, Central Office Building, Shahid Bhagat Singh Road, Mumbai-400 001 for consideration. 

5. The other terms and conditions as stipulated in paragraph 5 and 6 of A.P. (DIR Series) Circular No. 39 dated December 8, 2008 will continue to be applicable. This facility shall come into force with immediate effect and the entire process of buyback should be completed by March 31, 2012.

A. P. (DIR Series) Circular No.75 dated 30th June 2011

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