Clarification regarding revision of conversion price of Foreign Currency Convertible Bonds

Dated 15-3-2010

 

In continuation to the Press Note dated 15th February, 2010 regarding the amendment to the "Issue of Foreign Currency Convertible Bonds and Ordinary Share (Through Depositary Receipt Mechanism) Scheme, 1993," (the Scheme) permitting revision of conversion price of FCCBs, It is clarified that for the purpose of revision of conversion price   in accordance with the conditions mentioned in Press Note dated 15th February, 2010, the 'relevant date' mentioned under the pricing norms in Clause 5 (4)(D) of the Scheme would mean the date of the meeting in which the Board of the company or the committee of Directors duly authorized by the Board of the company decides to revise the conversion price of the existing FCCBs.

2. However, for all other purposes the definition of 'relevant date' would remain as prescribed in Press Note dated 27th November, 2008.

Press Note [F.No. 9/3/2009-ECB]

Revision of conversion price clarified: the relevant date is the board or authorised committee meeting deciding the change. For the purpose of revising the conversion price of existing FCCBs under the amended Scheme, the relevant date in the pricing norms is the date of the meeting in which the Board or a Board authorised committee decides to revise the conversion price; for all other purposes the definition of relevant date remains as previously prescribed in the earlier Press Note.