Treatment of convertible debt instruments clarified: compulsorily convertible instruments govern reserved allotments and preferential exemptions applied. Regulations amend the treatment of outstanding convertible debt in rights and bonus issues by specifying holders of compulsorily convertible debt instruments, removing prior conditional wording, adding ', if any,' to allocation language, and replacing 'on' with 'at' in pricing/allotment clauses. A new provision exempts certain sub regulation requirements from applying to preferential issues where the proposed allottee is a registered Mutual Fund or an Insurance Company.