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Whenever preference shares are redeemed does the CRR is created
Answers (2)
Amount transferred to CRR(Shortfall) = Nominal value of preference capital to be redeemed - Nominal value of any fresh issue of share capital So it's depends whether to create CRR or not If company doesn't go for any fresh issue of shares then , company has to create CRR 100% of the nominal value of redemption of preference shares . And If company is issuing 100% of the nominal value of redemption of preference shares then, no need to create CRR at all.