Our Recommendations :-
Follow CA Final FB Page

explain secured premium notes

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Uma asked about 2 years ago

    0       0 Answer Now Comment Report
2 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered about 2 years ago

Dear friend Uma, **Meaning and Lock in period** Secured premium notes are issued with the warrant which is kind of detached. This way it ensures the holder right to apply and get the allotted equity shares.It also has many options to do the sell back to the holders at par or face value after the lock-in period. SPN is a kind of non-convertible debenture (NCD) attached with warrant. It can be issued by the companies with the lock-in-period of say four to seven years. This means an investor can redeem his SPN after lock-in-period. SPN holders will get principal amount with interest on installment basis after lock in period of said period. However, during the lock in period no interest is paid. **Features of a SPN** 1.SPN instruments are issued with a detachable warrant. 2.These instruments have lock-in-period for 4 to 7 years. 3.No interest is paid during the lock in period. 4.After the lock-in-period, the holder may sell back the SPN to the company

    0       0 Comment Report
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Open uri20170510 32134 tcchcu?1494421832 Jitendra Suthar answered about 2 years ago

Hiii frnd **Secured Premium Notes** Secured premium notes (SPNs) are financial instruments which are issued with detachable warrants and are redeemable after certain period. SPN is a kind of non-convertible debenture (NCD) attached with warrant. It can be issued by the companies with the lock-in-period of say four to seven years. This means an investor can redeem his SPN after lock-in-period. SPN holders will get principal amount with interest on installment basis after lock in period of said period. However, during the lock in period no interest is paid. Thus, SPNs are nothing but a share warrant which are only issued by the listed companies after getting the approval from the central government. SPN is a hybrid security i.e. it combines both features of equity and debt products. Regards,

    0       0 Comment Report
Videos
Books
Notes
Loading
SIGN UP
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.