L&T Finance to make early redemption of non convertible preference shares SECTIONS Share Synopsis With dividends being tax free in the hands of investors, the post tax return of 8 per cent was far superior to competing products like tax free bonds or fixed deposits. Financial planners say with dividend being taxable in the hands of the investor now, the instrument has lost appeal with rich investors. L&T Finance is making an early redemption of seven series of non-convertible redeemable preference shares (NCRPS) worth Rs 875 crore. These instruments with a tenure of 3-4 years, which were not converted to equity and paid a tax-free dividend, were popular with rich investors and family offices and several series were issued on a private placement basis in 2019.