Requirement of Letter of Option
Where the company desires to rollover the debentures by it, it should file with the SEBI a copy of the notice of the resolution to be debenture-holders through a merchant bank prior to dispatching the same to the holders. The notice should contain disclosures regarding credit rating, necessity for holders resolution and such other terms which the SEBI may specify. If a Company convert the debentures into equity shares according to the procedure discussed should file with the SEBI a copy of the letter of option to be sent to the debenture-holders a merchant bank prior to dispatching the same to the, debenture-holders. The letter on should contain disclosures with regard to option for conversion, justification and such other terms which SEBI may specify.