The Viewpoint - Put Call options Do we have an optionJanuary 24 2012
With the Securities and Exchange Board of India (SEBI) making their stand clearer on the put/ call options in the Cairn Vedanta deal/Vulcan Engineering, and the Reserve Bank of India (RBI) indicating that they may consider such options as external commercial borrowing, has opened a can of worms and has definitely created a lot of uncertainty which could affect foreign direct investment. This article summarizes the views of the regulator and analyses some of the issues involved.
First, RBI raised concerns on viability of options and was proposing to recharacterise the same as “guarantees”. Then SEBI says no ‘option . . .
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