What are the conditions to issue Redeemable Preference Shares ? Which are the companies that are permitted to issue Redeemable Preference Shares ?

Condition to issue redeemable preference shares in India: the Articles of Association authorizes the issue. a special resolution passed by shareholders. Redeemable preference share has a maturity date on which date the company will repay the capital amount to the preference shareholders. The paying back of capital is called redemption dividend. Preferences share shall be redeemed within a period not exceeding 20 years. However, infrastructure a company engaged in the setting up and dealing with of infrastructural projects may issue preference shares for a period exceeding 20 years but not exceeding 30 years, subject to the redemption of a minimum ten percent of such preference shares per year from the twenty first year onwards or earlier, on proportionate basis, at the option of the preference shareholders. NBFC has to comply with the RBI guidelines / directions in addition to the Companies Act, 2013. Further, the following companies are permitted to issue redeemable preference shares: Private Company Public Company Banks