Sebi: Can't issue preference shares to buy shares from, extend loan to related party

Has also barred its use for acquisition of shares from such a person, according to a notification on regulations for issue & listing of non-Convertible Redeemable Preference Shares

The Securities and Exchange Board of India has stated that non-convertible redeemable preference shares cannot be used to extend a loan to a person who is part of the same group or under the same management.

It has also barred its use for acquisition of shares from such a person, according to a notification on regulations for the Issue and Listing of Non-Convertible Redeemable Preference Shares  published on the Sebi website on Friday.