MUMBAI, July 28: Even as the US Securities Exchange Commission (SEC) is yet to decide on the fate of the State Bank of India (SBI) Resurgent India Bonds (RIBs) in the US, the bank has embarked upon the second phase of marketing for the bonds.Officials say if SEC does not give the green signal to sell the RIBs within the next seven days, it will not be able to market the bond in the US. "At the most, only five to seven per cent of the probable collections in the US may be affected," Verma said.SBI Chairman, M S Verma, said that US-based NRIs could invest in RIBs through collection centres outside US including those opened by four other Indian banks and nine foreign banks.According to sources, the CEO of SBI's New York operations is slated to meet the regulatory authority on July 30. The earlier meeting, scheduled on July 24, was deferred. "This is not the first time that a meeting between the bank and the US regulatory authority got postponed. The delay in clearing the issue may not be usual," sourcessaid.In the absence of the green signal from the SEC, the bank will not be able the hold the roadshow in the US. "The bond cannot be marketed in the US. The bank will not be able to advertise the issue. However, if the non-resident Indians and overseas corporate bodies in the US remit the fund to London or any other country they will be able to subscribe to the bond," sources said.The address of the US-based investor has to be outside the US, they added.Meanwhile, the first leg of roadshows headed by SBI chairman MS Verma - held in the Middle East - came to an end on Monday amid "overwhelming" response. The issue - slated to open on August 5 - is likely to be closed on August 17, the earliest closing date. At the same time, a top SBI team today left for Germany and another will fly to the United Kingdom by July 30 to market the bonds. The bonds are targeted to garner $ 2 billion and were unveiled by the union finance minister Yashwant Sinha to ensure foreign exchange flows following USsanctions against India.Meanwhile, Verma ruled out modification of the RIBs to accommodate exporters. "No change can be made at this point of time," Verma said in response to a query over representation by exporters to the finance ministry and the RBI allowing them to invest in RIBs from their Exchange Earners' Foreign Currency accounts.
