Case Law Details
Brief Facts of the Case and Question of Law
Brief Facts
The assessee claimed a loss of Rs. 111 per debenture on the sale of debentures of Jindal Iron and Steel Co (“JISCO”) to UTI. These assessee were shareholders of JISCO, which declared a right issue of secured redeemable non-convertible debentures (NCD) of Rs. 500/- each. The size of the issue was about Rs. 500 crores. The issue opened on 21.11.94 and closed on 19.12.94. Interest @10.5% was payable by JISCO on those debentures. To make the debenture issue attractive, JISCO fixed a detachable warrant (DW) with each debenture, the holder of which was eligible to apply for one share of JISCO within a specified period.
The salient features of the rights issue of NCD as approved by SEBI were as under:-
a) Each debenture was of face value of Rs. 500/-.
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