Capital market regulator Sebi will allow listing of preference shares on stock exchanges to make it easier for banks and infrastructure companies to raise funds. Preference shares are quasi-equity instruments that have limited voting rights and give specific dividend that is paid out before a company distributes dividend to regular shareholders.Unlike equity and debt, public issue and listing of preference shares are not covered under existing rules. The Sebi board, which is meeting in Delhi on Friday, is expected to approve changes that will pave the way for listing of these securities, as well as permitting infrastructure companies to raise long-term capital through issuance of preference shares with life of over 20 years.

Source - http://economictimes.indiatimes.com