Prepayment of foreign currency convertible bonds allowed under conditions; issuer-initiated with holder consent and funds restrictions. Prepayment of foreign currency convertible bonds by Indian issuers is permitted until 30 September 2003; issuers may initiate prepayment but actual buy back requires holder consent. Prepayment must not exceed face value including expenses, bonds repurchased must be cancelled and not reissued, and funds for prepayment must not come from fresh external debt. The scheme operates under the automatic route with limits on prepayment from local resources and no limit for EEFC funds or inward equity remittances if conditions are met. Companies must report details of repurchases and sources of funds to the Ministry of Finance and the Reserve Bank within 30 days of completion.
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.
Prepayment of foreign currency convertible bonds allowed under conditions; issuer-initiated with holder consent and funds restrictions.
Prepayment of foreign currency convertible bonds by Indian issuers is permitted until 30 September 2003; issuers may initiate prepayment but actual buy back requires holder consent. Prepayment must not exceed face value including expenses, bonds repurchased must be cancelled and not reissued, and funds for prepayment must not come from fresh external debt. The scheme operates under the automatic route with limits on prepayment from local resources and no limit for EEFC funds or inward equity remittances if conditions are met. Companies must report details of repurchases and sources of funds to the Ministry of Finance and the Reserve Bank within 30 days of completion.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
