FCCB buyback rules permit premature repurchase subject to specified funding, discount and reporting conditions. Regulations allow premature buyback of FCCBs under an automatic route-permitted by designated AD Category I banks where buybacks are at least 15% below book value, funded from existing foreign currency resources or fresh ECBs in conformity with ECB norms and subject to all in cost ceilings-or under an approval route-where buybacks are at least 25% below book value, funded from internal accruals evidenced by auditor and AD bank certification, and subject to a per company buyback ceiling; both routes require prior RBI registration, up to date ECB 2 returns, bondholder consent, cancellation of repurchased bonds, escrowing of funds, and post completion reporting.
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FCCB buyback rules permit premature repurchase subject to specified funding, discount and reporting conditions.
Regulations allow premature buyback of FCCBs under an automatic route-permitted by designated AD Category I banks where buybacks are at least 15% below book value, funded from existing foreign currency resources or fresh ECBs in conformity with ECB norms and subject to all in cost ceilings-or under an approval route-where buybacks are at least 25% below book value, funded from internal accruals evidenced by auditor and AD bank certification, and subject to a per company buyback ceiling; both routes require prior RBI registration, up to date ECB 2 returns, bondholder consent, cancellation of repurchased bonds, escrowing of funds, and post completion reporting.
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