FCCB Buyback Window Extended Till June 2010 Under Approval Route
Current · Source: Reserve Bank of India · RBI/2009-10/367 · issued 29 Mar 2010 · ~2 min read
Quick answerRBI has reopened the approval route for FCCB buybacks until June 30, 2010, after the automatic route ended on Dec 31, 2009. Issuers must comply with conditions from earlier circulars and apply through their AD Category-I bank.
The rule, in the simplest words
Companies can now ask RBI for permission to buy back their FCCBs (special bonds that can be turned into company shares) until June 30, 2010.
The old automatic route (where no permission was needed) ended on December 31, 2009, so now every buyback needs RBI's approval.
To apply, companies must follow all the rules from two earlier RBI circulars (from December 2008 and April 2009).
Applications must be sent through a special bank (AD Category-I bank) to RBI's office in Mumbai.
This is a limited-time chance—after June 30, 2010, no more buybacks will be allowed under this scheme.
How it plays out — a real example
Ravi, a forex & trade-finance officer in Indore, gets a call from a corporate client who issued FCCBs two years ago. The client wants to buy back some bonds before the June 30 deadline. Ravi explains that the automatic route is closed, so he helps the client gather all the required documents from the earlier RBI circulars and submits the application through his bank to RBI's Mumbai office, ensuring everything is correct so the client can manage their foreign debt in time.
What changed
The earlier scheme allowing FCCB buybacks under both automatic and approval routes expired on December 31, 2009. Now, RBI will consider fresh applications only under the approval route until June 30, 2010, in response to representations from issuers.
What it means for you
Banks and their corporate clients can now seek RBI approval for FCCB buybacks, but only through the approval route—no automatic clearance. This provides a limited window for companies to manage their foreign currency liabilities, but requires strict adherence to earlier conditions and documentation.
What you must do
Inform corporate clients about the reopened approval route for FCCB buybacks until June 30, 2010.
Ensure all buyback applications comply with conditions from A.P. (DIR Series) Circular No. 39 dated Dec 8, 2008 and No. 65 dated Apr 28, 2009.
Submit complete applications with supporting documents to RBI's Foreign Exchange Department, ECB Division, Mumbai.
Advise clients that the automatic route is no longer available; only approval route applications will be considered.
Who it affects
AD Category-I banks, Indian companies that issued FCCBs, Corporate treasuries managing foreign currency debt
❓ Common questions
Can we still use the automatic route for FCCB buyback?
No, the automatic route was discontinued from January 1, 2010. Only the approval route is available until June 30, 2010.
What documents are needed for the approval route application?
The circular does not list specific documents, but you must comply with all terms and conditions from the referenced earlier circulars (No. 39/2008 and No. 65/2009) and submit supporting documents through your AD Category-I bank.
Where should we send the application?
Submit it through your designated AD Category-I bank to the Chief General Manager-in-Charge, RBI, Foreign Exchange Department, ECB Division, Central Office, Mumbai.
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/367
A.P. (DIR Series) Circular No. 44
March 29, 2010
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Buyback / Prepayment of Foreign Currency Convertible Bonds (FCCBs)
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to the A.P. (DIR Series) Circular No. 39 dated December 08, 2008 and A.P. (DIR Series) Circular No. 65 dated April 28, 2009 on the captioned subject. In terms of A.P. (DIR Series) Circular No. 58 dated March 13, 2009, Indian companies were allowed to buyback their Foreign Currency Convertible Bonds (FCCBs) both under the automatic route and approval route until December 31, 2009. The Scheme was discontinued with effect from January 1, 2010.
2. In view of the representations made by the issuers of FCCBs, it has been decided to consider applications, under the approval route, for buyback of FCCBs until June 30, 2010, subject to issuers complying with all the terms and conditions of buyback/prepayment of FCCBs, as mentioned in A.P. (DIR Series) Circular No.39 dated December 08, 2008 and A.P. (DIR Series) Circular No.65 dated April 28, 2009. Accordingly, applications complying with the conditions may be submitted, together with the supporting documents, through the designated AD Category - I bank to the Chief General Manager-in-Charge, Reserve Bank of India, Foreign Exchange Department, External Commercial Borrowings Division, Central Office, 11th Floor, Central Office Building, Shahid Bhagat Singh Road, Mumbai-400 001.
3. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
4. The directions contained in this circular have been issued under sections 10 (4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/367 · issued 29 Mar 2010. The plain-English explanation above is BankPulse’s own independent summary.
Ensure all buyback applications comply with conditions from A.P. (DIR Series) Circular No. 39 dated Dec 8, 2008 and No. 65 dated Apr 28, 2009.
Submit complete applications with supporting documents to RBI's Foreign Exchange Department, ECB Division, Mumbai.
Advise clients that the automatic route is no longer available; only approval route applications will be considered.
📜 Compliance
Inform corporate clients about the reopened approval route for FCCB buybacks until June 30, 2010.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (AD Category-I banks, Indian companies that issued FCCBs, Corporate treasuries managing foreign currency debt), your first concrete step on “FCCB Buyback Window Extended Till June 2010 Under Approval Route” is: “Inform corporate clients about the reopened approval route for FCCB buybacks until June 30, 2010.” (RBI issued this 29 Mar 2010).
Circular: RBI/2009-10/367 -- FCCB Buyback Window Extended Till June 2010 Under Approval Route
Issued: 29 Mar 2010
Action required: Inform corporate clients about the reopened approval route for FCCB buybacks until June 30, 2010.
Action required: Ensure all buyback applications comply with conditions from A.P. (DIR Series) Circular No. 39 dated Dec 8, 2008 and No. 65 dated Apr 28, 2009.
Action required: Submit complete applications with supporting documents to RBI's Foreign Exchange Department, ECB Division, Mumbai.
Action required: Advise clients that the automatic route is no longer available; only approval route applications will be considered.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5553&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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