Relevant date for conversion of fcds
Querist :
Anonymous
(Querist) 22 November 2011
This query is : Resolved
Can the Relevant Date (to determine the conversion price)of a FCD be a date earlier than the date of subscription to the FCDs? Or it has to be a future date only (i.e., 6 months from the date of sbuscription). For example, if an investor subscribes into FCDs of a listed company on 22nd Nov. 2011, the conversion into Eq. Shares takes place on 20th May 2012. But Company says that the relevant date is 19 Oct 2011 since they held the EGM on 18 Nov 2011 and accordingly they determine the conversion price.
Please advise
Raj Kumar Makkad
(Expert) 22 November 2011
Until and unless FCD of company is not listed, it cannot be termed as a public notice/commencement hence the relevant date shall be 6 month from the date of listing for conversion into equity shares and not from the date of AGM.
Querist :
Anonymous
(Querist) 22 November 2011
Thanks a lot. I may add that the Company is listed for last 2 years. Therefore, prior to the date of EGM (18th Nov. 2011) the Company was listed almost for 2 years. I thought that Company could have planned an EGM before the May 2012 date of conversion. Thus in the instatnt case if, for example, they hold an EGM on 15th May 2012, the relevant date could be 16th April 2012. Is this understanidng correct?
