Modes of fdi

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Dear Members,

If the Pvt. Company is getting FDI, then which mode of FDI (Compulsorily Convertible Debentures or Convertible Preference shares) is more beneficial from accounting and Taxation point of view for the Company.?

 

Plz give advice on the same.

Replies (1)
Then it be convertible debentures if it doesn't affect ur debt equity ratio so much.... Bcz in case of preferences share u have to pay DDT on ur dividend and cost becomes higher for u.... In case of debentures u get Tax shield also on ur interest expenses... So its better convertibles debentures

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