RBI gives companies 9 more months to buy back FCCBs
17 Mar 2009
The Reserve Bank has extended the last date for companies to complete the buyback of their outstanding foreign currency convertible bonds (FCCBs) by nine months to 31 December 2009.
"It has been decided to extend the date for completing the entire procedure for buyback of FCCBs from 31 March 2009 to 31 December 2009," the RBI said in a statement.
The extension of the buyback date will give more leeway for companies which want to opt for the buyback.
As per an earlier circular, the entire procedure of buyback of FCCBs should have been completed by the Indian Companies by 31 March 2009.
All the other terms and conditions of buyback / prepayment of FCCBs shall remain unchanged.
The RBI has asked banks to detail the guidelines to the notice of their constituents and customers concerned.
At present it is beneficial for the companies to buy back FCCBs as at the time of issuing these bonds they had done it at higher prices.
In fact, recently, some companies like Jubliant Organosys, Moser Baer, Mahindra and Mahindra and Reliance Communications have announced buyback of FCCBs.
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