The Reserve Bank of India (RBI) has revived the scheme for companies to buy back foreign currency convertibles bonds (FCCBs). It will keep the window open to consider applications till June 30. Indian companies were allowed to buy back FCCBs, both under automatic and approval routes, until December 31, 2009. The scheme was discontinued with effect from January 1. Both the company concerned and the economy will benefit from the buyback at a time when FCCBs are trading at a discount. The central bank had allowed the buyback and prepayment of FCCBs soon after the global financial crisis intensified in 2008.
