Petronet Lng Ltd vs Indian Petro Group And Another on 13 April, 2009 resorting to this instrument. Finally, the Asian Development offered to help out in case FCCB redemption (expected five years after the issue. In 2011-2012) was not supported by adequate cash flows from within the company." D. The offending news item published on 05.05.2006: "PLL's $ 100 - million FCCB: Salient points "May 4: Petronet LNG Ltd., (PLL) proposed issue of $100 million foreign currency convertible bonds (FCCB) to finance Kochi LNG terminal saw five merchant bankers making their detailed presentations to the board members of India's largest liquefied gas importer. The salinet point of the presentation were: . the redemption of the bonds would be guaranteed by the merchant banker, . In the event of the bonds being converted into shares, they would become zero coupon bonds. However, if conversion takes place after 5 years, the indicated yield to maturity (YTM) would be between 4.5% to 5.5% per annum. . The indicated conversion premium for the bonds would be in the range of 30% and 40% . To covert the bonds to shares, a premium would be charged on the market price prevailing after 15 months, thus effectively blocking conversion of the bonds for this period, . Redemption or conversion may be enforced till the market price of the stock does not exceed 130% of the converted price plus cumulative YTM, . The transaction can be completed within a period of 4 to 6 weeks. CS(OS) No.1102/2006 . FCCBs could be denominated in either dollar or yen. However, yen- Pa denominated FCCBs would be expensive considering the fully hedged cost. Therefore, dollar denominated FCCBs would be the right way to go, . By law, FCCBs are required to be listed at least one stock exchange abroad. Singapore stock exchange is the preferred stock exchange in view of the low cost of listing and easy procedures involved in the stock exchange; and Promoters can buy recover the 3.25% dilution in their holding through creeping acquisition route. This route has two advantages- ? cash outlay being spread over five years and low average cost of acquisition of shares on account of lower cost of shares in the initial years." 7. The plaintiff says that it would be seriously prejudiced and would suffer irreparable injury if the offending news items are allowed to remain in the suit website. It is claimed that the information contained in the news item reproduced in paragraph A (i) above falls within the purview of being 'price sensitive information' as provided for in SEBI (Prohibition of insider Trading) Regulations, 1992 ("SEBI Regulations"); it is speculative in nature and contains disclosures relating to the plaintiff's business plans at the present only at the drawing board stage, with no certainty about if they would materialize wholly or in part. Such disclosure by unauthorized means of such price sensitive information of a publicly listed company could have a strong bearing on the market behavior of the shares of the company and may affect the interests of lakhs of investors adversely. Under the SEBI Regulations all listed companies are required to frame and comply with a code of internal procedures and conduct which casts an obligation on the plaintiff to protect and prevent the misuse of price sensitive information. In addition, any violation of the SEBI Regulations is an Indian Kanoon - http://indiankanoon.org/doc/8534067/ 6

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