Issue of preference shares for a period exceeding 20 years is permitted only for:

1. Section 55 and Rule 10 of the SC&D Rules permit preference shares with a redemption period beyond 20 years (up to 30 years) only for infrastructure projects. 2. Annual redemption of 10% from the 21st year is required. 3. Hence (A). _Source: ICAI BoS CA Inter Paper 2 — Share Capital and Debentures_