Indian companies are considering buying back foreign currency convertible bonds estimated to be worth a total of $19bn after the central bank released new rules allowing the move in a bid to ease pressure on the rupee. The moves are aimed at enabling companies to unwind the bonds in an orderly fashion, with most of them coming due in the next few years.

Most of their conversion prices were set when the stock market was at its peak. There are fears that some companies that had banked on share prices continuing to climb might be unable to afford to repay their convertible bonds when they come due and could be forced into panic refinancing. Some companies’ share prices have fallen so much, their convertible bonds are worth more than their market capitalization.