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Can a foreign investor invest in Preference Shares? What are the regulations applicable in case of such investments?

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Can a foreign investor invest in Preference Shares? What are the regulations applicable in case of such investments?
posted Aug 3, 2017 by Rani Das

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1 Answer

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Yes. Foreign investment through preference shares is treated as foreign direct investment. However, the preference shares should be fully and mandatorily convertible into equity shares within a specified time to be reckoned as part of share capital under FDI. Investment in other forms of preference shares requires to comply with the ECB norms.

answer Aug 8, 2017 by Shubham Rajput
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