Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: empanelment :: list of goods taxed at 4% :: due date for vat payment :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: ACCOUNTING STANDARD :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: cpt :: articles on VAT and GST in India :: ACCOUNTING STANDARDS
 
 
« General »
 The differences between tax and cess
 Startups that raised funds from angel investors face tax scrutiny
 Tax collection assumptions in India's budget ambitious
 All scrutiny cases, sans search, to be e-assessed
 Key tax changes that will come into effect from April 1
 Eight lakh companies on Income Tax department radar for not filing tax returns
 4 things a taxpayer shouldn’t miss
 Impact on LTCG will be more than 10 per cent
 Here's how much the tax reliefs you want will cost the finance minister
 Companies (Appointment and Qualification of Directors) Amendment Rules, 2018
 How young earners can claim HRA tax exemption with ease

RBI extends time limit for buyback of FCCB buyback
July, 01st 2011

The Reserve Bank of India (RBI) today extended the time limit for buyback of Foreign Currency Convertible Bonds (FCCBs) issued by companies, by nine months to March 31, 2012 but has reduced the discount slabs for the buyback.

The earlier deadline for buyback of FCCBs was set for June 30, 2011.

Indian firms can now buyback the FCCBs at a minimum discount of 8% on the book value utilising their foreign currency funds under the automatic route, as against 15% earlier, the RBI said in a notification.

Under the approval route, Indian companies have been allowed to buyback the FCCBs at a minimum discount between 10 and 20% on the book value utilising their internal accruals. This was earlier fixed at 25-50%.

"After reviewing the current policy on buyback/prepayment of FCCBs, the RBI in consultation with the government of India has decided to extend the time limit for buyback of FCCBs issued by Indian companies up to March 31, 2012 at reduced discount rates," the central bank said.

It further added: "The existing policy on the premature buyback of FCCBs has been reviewed and it has been decided to extend the time limit for such facility and liberalise the procedure."

FCCB is a debt instrument with an equity option by which companies raise funds from overseas. It remains a debt till the option is exercised and the bond is converted into equity.

The extension of the window allows greater freedom and leeway to Indian companies.

FCCBs witnessed a huge surge during 2006-07. However, the global economic meltdown on 2008-09 impacted most of the companies.

As per today's notification, under the approval route the companies have been allowed to buyback the FCCBs at a minimum discount of 10% of book value up for redemption of up to $50 million as against 25% earlier.

For redemption of $50-75 million the discount has been fixed at 15% as against 35% earlier. As for redemption of $75-100 million, the discount rate has been reduced to 20% from 50%.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions