{"id":7759,"date":"2022-11-11T01:05:13","date_gmt":"2022-11-10T19:35:13","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=7759"},"modified":"2025-03-28T22:43:27","modified_gmt":"2025-03-28T17:13:27","slug":"compulsorily-convertible-preference-shares-ccps","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/compulsorily-convertible-preference-shares-ccps\/","title":{"rendered":"Compulsorily Convertible Preference Shares (CCPS)"},"content":{"rendered":"<h2><strong>About Compulsorily Convertible Preference Shares (CCPS):<\/strong><\/h2>\n<ul>\n<li>CCPS, or Compulsorily Convertible Preference Shares, are a key element of startup financing.<\/li>\n<li>It gives the assurance of a fixed rate of return plus the opportunity for capital appreciation.<\/li>\n<li>These shares carry certain terms\u2014if an early investor has CCPS, he can have more rights than other investors who come in later at a higher valuation.<\/li>\n<li>It also helps investors maintain their stake and have a say even if their stake gets diluted later.<\/li>\n<li>However, these shares get converted to ordinary equity shares after 10-15 years.<\/li>\n<li>That is more than sufficient time for most startups to give their investors an exit.<\/li>\n<li>CCPS also helps founders keep control of a company even if their stake is lower than that of investors.<\/li>\n<\/ul>\n<hr \/>\n<p><strong>ource :\u00a0<\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/companies\/go-digit-irdai-no-to-fairfax-proposal-for-ccps-conversion-8259565\/\" target=\"_blank\" rel=\"nofollow noopener\">Indian Express<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>CCPS is a type of preferred share that gives holders the option to convert their preference shares<\/p>\n","protected":false},"author":5,"featured_media":7760,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-7759","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/7759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=7759"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/7759\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/7760"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=7759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=7759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=7759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}