abhishreshthaa

New member
Most of the preference shares in India are fixed rate dividend shares with cumulative rights. Both redeemable and non-redeemable shares are in vogue in India, but many redeemable shares are so, only at the discretion of the companies. Over a period of time, there has been a trend towards increasing the proportion of redeemable preference shares to total preference shares. The maturity period of redeemable preference shares is usually between 12 to 15 years.


The practice of issuing preference shares with participation and conversion rights in not common. Preference shareholders have voting rights only on those issues which vitally affect the rights attached to their shares. The denomination of preference shares is between Rs.1 to Rs. 1000, but the most common and popular one is Rs. 100.


Preference shares offer a perfect certainty of income and they are less risky. Apart from uncertainty of return, marketability and liquidity, preference shares are low in practice because the market for them is narrow and less active. However, new companies still play a relatively greater role than in case of old companies.
 

jiten005

Banned
Most of the preference shares in India are fixed rate dividend shares with cumulative rights. Both redeemable and non-redeemable shares are in vogue in India, but many redeemable shares are so, only at the discretion of the companies. Over a period of time, there has been a trend towards increasing the proportion of redeemable preference shares to total preference shares. The maturity period of redeemable preference shares is usually between 12 to 15 years.


The practice of issuing preference shares with participation and conversion rights in not common. Preference shareholders have voting rights only on those issues which vitally affect the rights attached to their shares. The denomination of preference shares is between Rs.1 to Rs. 1000, but the most common and popular one is Rs. 100.


Preference shares offer a perfect certainty of income and they are less risky. Apart from uncertainty of return, marketability and liquidity, preference shares are low in practice because the market for them is narrow and less active. However, new companies still play a relatively greater role than in case of old companies.

Well, many many thanks for your help and providing the information on fixed rate dividend shares. BTW, i am also going to upload a document where you can find some useful information and can also included in your report..
 

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