RAVI ARORA (COMPANY SECRETARY) (24 Points)
16 January 2010WE ARE A LISTD COMPANY WISH TO ISSUE PREFERENCE SHARES (NON CONVERTIBLE) TO ONE OF OUR INDIAN GROUP CO. AT A PREMIUM . TO MY UNDERSTANDING SINCE IT IS NON CONVERTIBLE PREF SHARES NOT GOING TO BE LISTED THE PRICING OF SHARES CAN BE BASED ON THE CCI GUIDELINES BASED ON THE NETWORTH OR PECV METHOD .
PLS GIVE UR VALUABLE COMMENTS URGENT .
Rasesh
(CS CWA MBA (Fin) B.Com LL.B (Spl))
(6501 Points)
Replied 17 January 2010
preferece shares that are non-convertible can be issued at any value. The guidelines issued by the erstwhile CCI are not binding at the moment. However, as a matter of good governance, the pricing shoud be based on prudent valuation.
preference shares would carry a fixed rate of dividend and a fixed redemption tenure and amount. Hence, the pricing and premium should be commensurate to the dividend rate and the redemption premium.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
