Introduction Of Non-Convertible Redeemable Preference Shares :
SEBI has notified the SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013 to govern big issues of non convertible preference shares. Preference shares, in general, are fairly common among the foreign investors, venture capital investors and so on as such instruments give preference in dividend and at the same time have other features of ordinary debentures.
There are SEBI (Issue and Listing of Debt Securities) Regulations, 2008 which govern non-convertible debt securities and issue of equity and convertible securities by a listed company are governed by SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. However, there were no such regulation which governed the issue and listing of non-convertible redeemable preference shares. As a result of huge fund raising through non convertible preference shares, SEBI had decided to govern the issue of such shares also and in this direction notified the NCRPS Regulations.