Banking companies

Thread Starter

Sir i saw 2 questions, one in banking company and other in nbfc In banking company.. Non cumulative pref shares were added And in nbfc compulsorily convertible pref shares were added. So thats why i asked whether it is possible to do vise versa also.. Thank you sirð???

Sudha Reddy

Yes. Have you come across any question regarding the same

Sudha Reddy

Compulsorily convertible into equity shares are considered as good as equity, so hence included in Tier I And Perpetual Non-cumulative Preference Shares (PNCPS) eligible for inclusion as Tier I capital - subject to laws in force from time to time; (check this https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=9894&Mode=0#11)