Procedure-issue of redeemable preference shares listed co

Hello.....

Attached file may solve ur query to an extent............

Regards

Nidhi

ICDR Regulations apply for private placement

Sry, forgot to attach

Thanks Nidhi. I'm looking for a check list for "issue of redeemable preference shares", not for redemption. In case you have a checklist for issue, please help me with the same too.

Hello!

Ur welcome.

Nd attached file may fulfill ur purpose...........

Regards

Nidhi

Originally posted by : CS Snehal
	ICDR Regulations apply for private placement

Well in my opinion ICDR is not applicable to issue of preference share. Definition of security as defined in ICDR includes only Equity and convertible equity shares.

Hi, Nidhi,

As per your attached check list, company need to appoint grading agency.  Will you please guide us where this requirement are incorporated???

Thanks

Privately placed issues attract ICDR regulations. For preference shares they are silent.

The question reads as :  Do ICDR regulations apply if it is a private placement, i.e., preferential allotment by listed companies

My reply was to this query.

Private placement of equity and convertible securities.

Hi Snehal,

If that is case, I apologies for taking your reply in wrong way...!

  Query is still open as correctly pointed by CS Snehal, for preference shares ICDR is silent. So what will be the procedure for issue of redeemable preference share for listed company and if such issue is on private placement.

Thanks & Regards

Jaideep Pandya

Hello Jaideep!

As Mr. Sarda was asking for check list for "issue of redeemable preference shares" which was available in my files. So i just provided the same to him. Rest i havnt done something like this practically. So, i dont think so i m the right person to comment on appointment of grading agency. I will read about the same and get back to u if i will find something related to that.

Regards

Nidhi

First of all ICDR regulations are not applicable in case of issue of Preference Shares.

Secondly, these preference shares are not required to be issued to the Stock Exchange.

The checklist is as under:-

1  Ensure issued of preference shares are given in the Articles. if not, alter the articles by passing Special Resolution and file form 23 within 30 days.

2. Check whether the Authorised Capital need changes or not. If required change, alter MOA by passing ordinary resolution and file form 5 within 30 days.

3. Hold a board meeting and discuss the matter to issue the preference shares on preferential basis. And issue notice of General Meeting.

2. In case of listed company send intimation about outcome of board meeting to the SE within 15 minutes by way of fax.

3. Hold General Meeting and pass Special Resolution udner section 80, 81(1A)

4. File form 23 within 30 days.

4.Issued notice of board meeting regarding allotment of preference shares on preferential basis and intorm to the SE.

5. Hold Board Meeting and allot shares.

6. Send intimation to the SE within 15 minutes by way of fax.

7. File form 2 within 30 days.

Furthermore, in every disclosure or intimation to the Stock Exchange, specifically mention that these Preference Shares are not sought to be listed at any stock exchange.

Thanks a lot Mr Srivastava. This is really helpful.

- Can we do away with a general meeting and have the resolution passed by postal ballot?

- Also, in case we need to list these preferential shares, what is the procedure?

Thanks once again.

Hi Jaideep,

There is no need for appologies. This is an open forum and we professional collegues must accept all views.

Sarada,

First of all please understand the difference between preferential issue of shares and issue of preference shares. You question is on a dicy ground with these words: in case we need to list these preferential shares, what is the procedure...

Thanks Nidhi for your attention on the point of Grading Agency... plz get back to us if u find any point on the same...

Thanks Snehal,

Sarda,

Company can very well pass the resolution through postal ballot, there is no bar as such...

secondly for listing of these preferential preference share, company need to take in-princlipal approval from stock exchange, where it intend to get listed.

Regards