Quote:
Originally Posted by monsterkartik
Dear Konqueror
I am unaware of this instrument DRD..
I even was looking for this on wikipedia but my efforts went in vain
Then i looked onto investopedia..
First of all this funda is not there is not applicable in Indian Context, and there has been an amendment only during this year to resolve the double taxation issue..
As regards this being a prt of capital structure..i cant understand ur query..
BUt no way its a part of capital structure..its just a way to avoid double taxation
Cheers
MK
|
Please make sure, before posting you have sufficient insight of what you are writing on a public forum, I am working on DRDs / Hybrid securities / PTCs. The subordination classification (in Capital Structure) is important to evaluate risk involved in this section of securities. DRDs fall above preferred securities which could show debt-like or equity-like behaviour in a stress condition.
If you think DRDs are not a part of capital structure, then I believe you are the wrong person whom I am answering in the first place. You might avoid reading this.
Thank you.
EDIT - If you have read my First post, I never said this refers to Indian context.