What changed
The original deadline for Indian companies to complete the entire buyback or prepayment process for Foreign Currency Convertible Bonds (FCCBs) was March 31, 2009. This circular extends that deadline to December 31, 2009. No other terms or conditions from the earlier circular have been modified.
What it means for you
Indian companies now have an additional nine months to finalize FCCB buybacks, easing immediate compliance pressure. Banks acting as authorized dealers must update their internal timelines and advise clients accordingly. The extension provides breathing room for companies facing liquidity or procedural challenges.
What you must do
- Update internal systems and client advisories to reflect the new December 31, 2009 deadline for FCCB buyback completion.
- Inform all relevant corporate clients about the extended timeline and unchanged terms from the December 8, 2008 circular.
- Ensure all buyback transactions are processed and documented by the revised deadline to avoid regulatory non-compliance.
Who it affects
AD Category-I banks handling FCCB buyback transactions, Indian companies with outstanding FCCBs eligible for buyback or prepayment, Corporate clients of AD Category-I banks involved in FCCB processes
What is the new deadline for completing FCCB buyback procedures?
The deadline has been extended from March 31, 2009 to December 31, 2009.
Are any other terms of the FCCB buyback changed?
No, all other terms and conditions from the December 8, 2008 circular remain unchanged.
Who is responsible for informing customers about this extension?
AD Category-I banks are required to bring the contents of this circular to the notice of their constituents and customers.