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Is there any restriction on the rate of dividend on preference shares payable to foreign investors ?

April 26, 2017dividend foreign investors Payable rate Shares

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Is there any restriction on the rate of dividend on preference shares payable to foreign investors ?

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A.17. As per FEMA regulations, the rate of dividend on preference shares or convertible preference shares, should not exceed 300 basis points over the Prime Lending Rate of State Bank of India prevailing as on the date of the Board meeting of the company in which issue of such shares is recommended.