Dear one,
We have Redeemed Preference shares which are non convertable recently on completion of maximum 20 years to a overseas investor who is appartenly our overseas equity investor as well. This is invested previous to 2007, wherein post 2007, law clearly demarcates this to be treated as debt before that there is no clarity what needs to be done with RBI on Redemption of this shares to investor. There is clarity on allotment where we need to report within 30 days to RBI through FC-GPR.
Can anyone please let me know.
Regards
Govindaraju
Seeking Guidance on Reporting Pre-2007 Non-Convertible Preference Share Redemptions to RBI: Clarification Needed A participant in a discussion forum seeks advice on reporting the redemption of non-convertible preference shares to the Reserve Bank of India (RBI). The shares, held by an overseas equity investor, were redeemed after 20 years. The investment was made before 2007, and the participant notes that post-2007 regulations classify such investments as debt, but there is no clear guidance on reporting redemptions to the RBI for investments made prior to 2007. The participant is aware of the requirement to report allotments within 30 days via the FC-GPR form and seeks further clarification. (AI Summary)
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