Issuance of Compulsory Convertible Preference Shares (CCPS)

[sachin sathyavrathan]

Dear Friends,

I would like to inquire about the following regarding a Non-Banking Financial Company (NBFC) that is planning to issue compulsory convertible preference shares (CCPS) amounting to less than 26% of its current paid-up share capital to increase its Net Owned Funds (NOF):

1. Is prior approval from the Reserve Bank of India (RBI) required at the time of issuing CCPS?
2. Is a valuation from a Registered Valuer necessary at the time of issuance?
3. Is any agreement required in this regard?

I would appreciate your valuable insights on these matters.

Thank you.

Regards,

CS Sachin Sathyavrathan

Membership No: A42942

Mob: 9567294412

[Rajat Agrawal]

No

Yes

Yes

Best,

Rajat 

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[Jai Gehani]

1. Yes

2. Yes

3. Based on discretion of Management

Best Regards

ACS Jai Gehani

Company Secretary in Practice

+91 70149 99180

Address: F-7, Kasturi Plaza, Bombay Motor Circle,

Jodhpur, Rajasthan-342003

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