Call option in HZL is invalid

The Securities and Exchnage Board of India's circular of last week on clearing of option arrangements is good news to Indian companies but will not help existing arrangements such as Hindustan Zinc's call option with the Government of India that was considered invalid under the notification issued in 2000. Corporate lawyers say the October 3 Sebi notification specifies that "nothing contained in this notification shall affect or validate any contract which has been entered into prior to the date of this notification". This includes Vedanta's call option on the government's shares.