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Wednesday, April 29, 2009

[FCCB]Buy back upto USD 100 million under RBI Approval Route based on larger discounts

RBI/2008-09/461 A. P. (DIR Series) Circular No 65 dated 28th April 2009

The total amount of permissible buyback of FCCBs, out of internal accruals, is increased to USD 100 million (from erstwhile USD 50 million) of the redemption value per company, under the approval route by linking the higher amount of buyback to larger discounts. Accordingly, Indian companies may henceforth be permitted to buyback FCCBs up to USD 100 million of the redemption value per company, out of internal accruals, with the prior approval of the Reserve Bank, subject to:

Minimum Discount on Book Value

Maximum Redemption Value


USD 50 million


USD 50 to 75 million


USD 75 to 100 million

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