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Can a private company (limited by shares) and an FDI entity issue debentures and preference shares to raise capital? If yes, then what is the procedure to be followed for the same? If it is not permitted, then why not? thank you.

Yes, a private company limited by shares can issue debentures and preference shares to raise capital. 

A company may issue debentures with option to convert such debentures into shares, either wholly or partly at the time of redemption. Section 71 of the Companies Act, 2013 would apply.

Preference shares on the other hand can be i...

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