In view of this, the working group felt that RBI may prescribe that conversion of debt into equity shares on restructuring cannot take place at off market rates, i.e., at a price which is higher than the latest available market price.
The working group felt that the conversion into unlisted shares should be restricted due to the limited exit options available to banks for unlisted shares. The working group recommended that any conversion of debt into equity should be done only in the case of listed companies.