Where should we report the non-participating preference share issued to non-resident? - FEMA - FAQ - FEMA

Ans : Non-participating preference shares are treated as debt securities. (a) If the Non-participating preference shares are held by foreign investor who is also holding equity shares of Indian reporting company, then Non-participating preference share should be reported in item 2.1 of 1.b FDI and 2.b DI in Section III (depending upon the % equity participating preference share held by foreign investor) at nominal value.