Merits and risks related with Secured premium notes
Write down the merits and risks related with Secured premium notes?
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Secured premium notes are issued with the warrant that is type of detached. This can be redeemed subsequent to a notice period of four to seven years. This way it makes sure the holder right to apply and receive the allotted equity shares. Secured premium notes has lock-in periods throughout that the interest is not inevitably to be paid for the invested amount. It also has several options to do the sell back to the holders at face or par value after the lock-in period. As in this only it holds lots of risks as the holder gets one equity share after a fixed period of time.
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