MUMBAI, Aug 7: The Bombay Stock Exchange has okayed the revision in the book closure of J and K series debentures sought by the Reliance Industries Ltd. The high interest outgo in the new interest regime has perhaps prompted Reliance to redeem both J and K series debentures. The J and K series debentures are due for redemption in February 2002 and 1999 respectively.

A sum of Rs 125.78 crore on debenture series J and Rs 263.77 crore on debenture series K are outstanding as on June 30, 1997.The pre-ponement of redemption of debentures has been decided on the basis of the representation made by the company, in their letter dated August 6 to BSE.

As per the revision the bookclosure has been slated for the period between September 15, 1997 and September 30, 1997. The company had earlier notified the exchange that the bookclosure period would commence from August 23 to September 2. In view of cancellation of the prior book closure dates, the new book closure period for determining the debenture holders entitled to receive redemption proceeds alongwith interest would be extended upto September 30,1997.

As per the arrangement, the debentures would be automatically delisted on the exchange from ex-interest date. However, BSE has intimated the member brokers to trade in the debenture series on cum-interest basis until further notice. Reliance had issued 87.40 lakh, 14 per cent secured redeemable non- convertible debentures of Rs 150 each aggregating Rs 131.10 crore (series J) and 2.65 crore 17.5 per cent secured redeemable non-convertible debentures of Rs 100 each aggregating Rs 265.50 crore (series K) in 1991, inter-alia to part finance their cracker project. The debenture of series J & K are redeemable on the expiry of 10 years from the date of allotment, that is on February 26, 2002 with an authority and option to the directors of the company to redeem the same at any time after 7 years from the date of allotment, on or after February 26, 1999.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.