Got a mail from BSE:
**Dear Debenture Holders, **
xxxx is exercising call option for its captioned ISIN xxxx
what is the meaning of this?
should i do anything from my end?
When the bond is issued, issuer can have some call option built into it.
Eg. A company can issue a debenture for 10 years with a call option to redeem at end of 5th Year.
In that case, at end of 5th year if company decides, they can pay back the principal and call back (or extinguish) the bond
This is just one example but there can be various other conditions. However early redemption is most common type.
Generally no action is envisaged, and this should be mentioned in mail.
If it is not, share the ISIN and I will look it up.