Issuance of shares at a discount permitted for debt-to-equity conversions under statutory resolution plans complying with RBI regulations. The amendment substitutes the phrase 'discounted price' with 'discount' and permits a company to issue shares at a discount to its creditors when debt is converted into shares pursuant to a statutory resolution plan or debt restructuring scheme, provided such conversion follows guidelines, directions or regulations specified by the Reserve Bank of India under the Reserve Bank of India Act or the Banking (Regulation) Act.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Issuance of shares at a discount permitted for debt-to-equity conversions under statutory resolution plans complying with RBI regulations.
The amendment substitutes the phrase "discounted price" with "discount" and permits a company to issue shares at a discount to its creditors when debt is converted into shares pursuant to a statutory resolution plan or debt restructuring scheme, provided such conversion follows guidelines, directions or regulations specified by the Reserve Bank of India under the Reserve Bank of India Act or the Banking (Regulation) Act.
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