Question

What change has the RBI made regarding the issuance of non-convertible redeemable preference shares or debentures to non-resident shareholders?

a.

Issuance is prohibited

b.

Permission is granted on a case-by-case basis

c.

Issuance is allowed as a bonus from General Reserves under a Scheme of Arrangement

d.

Issuance is allowed only through a public offering

Answer: (c).Issuance is allowed as a bonus from General Reserves under a Scheme of Arrangement Explanation:The RBI has decided that an Indian company may issue non-convertible redeemable preference shares or debentures to non-resident shareholders as a bonus from its General Reserves under a Scheme of Arrangement approved by a Court in India.

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Q. What change has the RBI made regarding the issuance of non-convertible redeemable preference shares or debentures to non-resident shareholders?

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