Non participating preference shares treated as debt securities must be reported under applicable FDI/DI items at nominal value. Non participating preference shares are treated as debt securities for FEMA reporting. If held by a foreign investor who also holds equity in the Indian reporting company, the non participating preference shares must be reported in the annual FLA/FLAIR return under the applicable FDI and DI line items in Section III, determined by the investor's percentage holding, and recorded at nominal value.