NTA has kept Option-4 as the answer in their final key.
However, the correct answer appears to be Irredeemable Preference Shares (Option 3).
Under the Companies Act, 2013, Section 55 mandates that all preference shares issued by a company must be redeemable within a maximum period of 20 years from the date of issue. Therefore, Irredeemable Preference Shares cannot be issued by companies in India.
The recognized types of preference shares are:
Based on Dividend Rights:
- Cumulative Preference Shares (arrears of dividend are accumulated)
- Non-Cumulative Preference Shares
Based on Participation in Surplus Profits:
- Participating Preference Shares (participate in surplus profits)
- Non-Participating Preference Shares
Based on Redemption:
- Redeemable Preference Shares (can be redeemed during the company's lifetime)
Based on Convertibility:
- Convertible Preference Shares (can be converted into equity shares)
- Non-Convertible Preference Shares