This sum amounts to approximately Rs. 1.1 billion and this conversion is in compliance with the direction issued by the Department of Supervision of Non-Bank Financial Institutions of the Central Bank.
The Central Bank direction was made on July 12, 2011, and the directors of the company had decided to make this share issue at a price of Rs. 10 per share to fixed deposit holders in lieu of their fixed deposits to the corresponding value.
The circular to shareholders said that these non-voting shares will have the right to an equal share in dividends paid by the company and the right to an equal share in the distribution of the surplus assets of the company on liquidation.
Shareholders sanction for the proposed conversion of 50% of the company’s fixed deposits into non-voting shares is required.