Capital Loss in case of SREI NCDs resolution

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This query is : Resolved

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Holders of defaulted SREI NCDs will receive a resolution plan with cash payments and future payments via Security Receipts (SR) and Optionally Convertible Deposits (OCD). These SRs and OCDs are held by Punjab National Bank and may be released after 8 years, contingent on available funds. The discussion clarifies how to book capital loss, suggesting that only the cash received now counts as the current return, with future SR/OCD payments potentially treated as income when received.

Chandrasekhar Kandiraju

Chandrasekhar Kandiraju (Querist)
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04 May 2024 The resolution plan of SREI infra NCD default, for its holders provides two components of payment. One part distributed as cash payment directly and the balance in the form of Security receipts (SR) and Estimated Optionally Convertible Deposits (OCD). These SRs and OCDs are held by Punjab National Bank and will be released after 8 years with condition that if funds available then! Please therefore inform how the capital loss of debt is booked for relevant assessment year. Is it only cash paid now as value of return; and SR+OCD if any paid after 8 years to be taken as income for future earnings?