Convertible Preference Shares

A Private Limited Company wants to raise funds by issue of Preference Shares to a Foreign Company which will be automatically converted in Equity Shares after the expiry of one year.

Plz suggest the procedure to be followed :-

(a) under the Companies Act

(b) External Commercial Borrowings Guidelines

Replies (2)
Hi Vinod, As per a report on May 4, 2007 all foreign funds raised by Indian companies through the issue of ‘partially convertible’, ‘non-convertible’ and ‘optionally convertible preference shares’ will be treated as debt and will be subject to guidelines applicable for external commercial borrowings (ECBs) and ‘convertible preference’ shares will be considered as share capital and should be taken to calculate foreign equity. So give me some more details like your the sector in which the investment is being made by the foreign company you can pm me the details if you need to.
Thanks. Plz check the details on PM.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details