Warrants/Debentures/Rights Issue

My husband is raising some capital for his company here in Delhi. The investment partners who are putting in some capital for equity, want a seperate right (in addition to current round) to be able to buy shares at a later date (in the next round) at a discounted price to market value then.

What is the best instrument to give them these rights? Please do share your inputs. more  

Compulsorily Convertible Preference Share or Compulsorily Convertible Debentures can be issued as per the requirement and approval given by your lenders. Because it will have impact on your net worth some times debentures may not be treated for net worth calculations and may be taken as outside liabilities and you may not be permitted to issue Preference Shares so issuing a debenture may have its effect on your TOL/TNW hence decide with cautiousness. more  
Purchasing or selling shares at discount or premium is taxable under Income Tax more  
preferential shares will best suit the current requirement more  
Post a Comment

Related Posts

    • Income Tax Refund

      Can someone update me on the Income Tax Refund status this year please. I filed my ITR in mid-Sept but have not got back any refund as yet.

      By Neeru Sood
      /
    • Accounts Outsourcing Service

      Hello friends. Please suggest a competent CA firm for outsourcing all accounting and filing work related to IT and GST for a small company, preferably based in South Delhi or Gurgaon

      By PRADEEP T
      /
    • Cash payment limits Rs. 10,000/-

      May I enquire from an expert among the group your guidance on two things, It is heard that cash payment limit is reduced to Rs. 10,000/- as against Rs. 20,000/- from April 01. Is is right.

      By Tsering Phuntsok
      /
    • Post offices do not pay more than 20,000 in cash.

      I have a TDS in post office for 5 years. When I visited there to withdraw the interest the concern clerk told that there is no provision to give the interest in cash for more than 20,000/-. He was ...

      By Gaurav Mittal
      /
    • i have a registered ngo and a pan card attached to it, but the brochure who did registration and all, entered the wrong spelling of name in pan card, it has been more than two years, now i wish to ...

      By Mani Dubey
      /
    • NEW PROPOSALS BUDGET 2017.

      I submit the following proposal to Hon.Fin.Min. Please study and comment.

      By Kv Venkata Chalam
      /
    • ICAI internal memo

      While ICAI members shouldnt indulge in illegal practices of converting black to white at the sam time they shouldnt behave like bhakts. Dont derail demonetisation but dont praise when the going is ...

      By Naina Mittal
      /
    • PSB BABUS CREATED FILTH ROBBED YET WE FACE DEMONET

      DEMONETIZATION ONLY TO BAILOUT PSBs, hiding the PSB babus' filth:- PIL In the scenario created in the mean time in the Nation of India, several evils have cropped up against h...

      By H Ahuja
      /
    • Why most black money holders are doomed

      Real estate firms or jewellers may not accept cash unless it is at a good discount, for they will have to declare it to the banks and pay taxes. So there is no easy option to convert it via real es...

      By Mohit Jain
      /
    • New steps after current situation.

      Exchange of Rs.500:Rs.1000 being given new Currency. Govt to take some immediate steps. 1. No cash transaction Rs.1,00,000/- above in all aspects. 2. PAN compulsory for Rs.1 lak & above transac...

      By Kv Venkata Chalam
      /
    • A senior CA's opinion

      I am sharing this in view of prevalent panic created by certain media over imposition of penalty on unaccounted cash of high denominations that are deposited into bank, I give my professional opini...

      By Naina Mittal
      /
Share
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)