A puttable financial instrument — one that the holder can require the issuer to redeem for cash — is classified by the issuer as:

Although a put right would normally create a financial liability, paras 16A–16B of Ind AS 32 carve out equity classification when all conditions are met — most subordinate class, identical features within that class, pro-rata share of net assets on liquidation, no other features making it liability-like, and cash flows linked to profit/loss or net asset value. This exception is targeted at cooperative and partnership-style instruments.