Sebi on 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.