The RBI on 8 Dec 2008 came out with a Circular on Buyback / Prepayment of FCCBs where they have mentioned that under automatic route FCCBs can be bought back at a discount of not less than 15% on book value.
Can someone tell me what does book value mean and how FCCBs are treated in the balance sheet?
Thanks.
The buyback value of FCCB shall be at a minimum discount rate of 15 per cent of the book value. suppose book value of FCCB is USD 1000 than buy back should be made at a price not less than USD 850. Yes it is face value ...
thank you for your reply.
what i wanted to know is the definition of book value of FCCBs......that is how do you or where is this figure of 1000 USD derived from?
Is the face value...the redemption value of the accreted value?
yes it is book value of FCCBs or
say issue price mentioned in the offering circular
Your saying that issue price mentioned in the offering circular is the book value of the FCCBs right??
Can tell me from where are you getting this (as in any ICAI guidelines etc.) or is there some kind of standard offering circular which has this?
can anyone pls let m knw if der is any prescribed form issued by RBI for making an application for buyback of fccb under approval route
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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