Issue of non convertible pref. shares to nri

Dear Divya,

Non convertible prefence shares are not considered as capital, they may be issued as debt and will require conforming to ECB guidelines, whereas, convertible prefence shares are allowed under automatic route and are considered as capital.

You may go through the FDI Policy 2015 as attached. Please take note of Point No. 3.3.2 and 3.5.4.1

Further, as far as Companies Act, 2013 is concerned, Section 55 and Rules related thereto have to be complied.

Also, please share info regarding the same left out by me.