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A new topology for a two-quadrant converter is presented. In the AC/DC transfer mode, the converter works as a rectifier with near sinusoidal input currents, whereas in the DC/AC transfer mode, it works as a square-wave pulse switching inverter. The converter is characterised by smaller power losses and reduced electromagnetic interference problems. Possible applications in adjustable speed drive with regenerative braking, wind energy conversion systems and small hydro interconnections with induction generators are also discussed.