Current · Source: Reserve Bank of India · RBI/2012-13/544 · issued 25 Jun 2013 · ~1 min read
Quick answerRBI extends the buyback/prepayment scheme for FCCBs under the approval route until December 31, 2013, after which it will be discontinued. This impacts AD Category-I banks and their clients holding FCCBs.
The rule, in the simplest words
The scheme that lets companies buy back (repay early) their FCCBs (special bonds that can be turned into company shares) with RBI's permission has been extended until December 31, 2013.
After December 31, 2013, this scheme will stop completely, so no more buybacks or prepayments will be allowed under it.
Banks must tell their customers about this new deadline so they can finish any buyback or prepayment before the scheme ends.
How it plays out — a real example
A forex & trade-finance officer in Indore, Priya, has a corporate client with FCCBs maturing in early 2014. She calls them to say, 'Good news: RBI extended the buyback scheme until December 31, 2013, so you can still repay those bonds early with RBI's approval. But after that date, the scheme ends, so let's start the paperwork now to meet the deadline.'
What changed
The existing scheme for buyback/prepayment of FCCBs under the approval route, which expired on March 31, 2013, has been extended until December 31, 2013. After this date, the scheme will stand discontinued.
What it means for you
Banks and their corporate clients now have additional time until end-2013 to complete FCCB buybacks or prepayments under the approval route. This extension provides relief for companies facing maturing FCCBs, but the scheme's eventual discontinuation signals a shift in RBI's approach.
What you must do
Inform all constituents and customers about the extended deadline of December 31, 2013 for FCCB buyback/prepayment under the approval route.
Process any pending FCCB buyback/prepayment applications under the scheme before the new deadline.
Advise clients to plan their FCCB restructuring or repayment strategies considering the scheme's discontinuation after December 31, 2013.
Who it affects
AD Category-I banks, Indian companies with outstanding FCCBs, Corporate treasuries managing foreign currency liabilities
❓ Common questions
What is the new deadline for FCCB buyback/prepayment under the approval route?
The scheme has been extended until December 31, 2013. It will be discontinued after that date.
Does this circular affect all FCCB transactions?
No, it only applies to buyback/prepayment under the approval route. Other FCCB transactions may be governed by separate regulations.
What legal authority does this circular derive from?
It is issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/544
A.P. (DIR Series) Circular No. 115
June 25, 2013
To,
All Authorized Dealer Category - I Banks
Madam / Sir
Buyback / prepayment of Foreign Currency Convertible Bonds (FCCBs)
Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 39 dated December 08, 2008 , A.P. (DIR Series) Circular No. 75 dated June 30, 2011 and A.P. (DIR Series) Circular No. 1 dated July 05, 2012 on the captioned subject.
2. Considering the developments in the global financial markets and on a review of the aforesaid scheme, it has been decided that the existing scheme of Buyback / Prepayment of FCCBs under the approval route which expired on March 31, 2013 may be continued till December 31, 2013 and shall stand discontinued thereafter.
3. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers.
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 are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully
(Rudra Narayan Kar)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/544 · issued 25 Jun 2013. The plain-English explanation above is BankPulse’s own independent summary.
Process any pending FCCB buyback/prepayment applications under the scheme before the new deadline.
📜 Compliance
Inform all constituents and customers about the extended deadline of December 31, 2013 for FCCB buyback/prepayment under the approval route.
Advise clients to plan their FCCB restructuring or repayment strategies considering the scheme's discontinuation after December 31, 2013.
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 with outstanding FCCBs, Corporate treasuries managing foreign currency liabilities), your first concrete step on “FCCB Buyback Scheme Extended Till Dec 2013” is: “Inform all constituents and customers about the extended deadline of December 31, 2013 for FCCB buyback/prepayment under the approval route.” (RBI issued this 25 Jun 2013).
Circular: RBI/2012-13/544 -- FCCB Buyback Scheme Extended Till Dec 2013
Issued: 25 Jun 2013
Action required: Inform all constituents and customers about the extended deadline of December 31, 2013 for FCCB buyback/prepayment under the approval route.
Action required: Process any pending FCCB buyback/prepayment applications under the scheme before the new deadline.
Action required: Advise clients to plan their FCCB restructuring or repayment strategies considering the scheme's discontinuation after December 31, 2013.
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=8058&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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