: Non-derivative contract to be settled in own equity instruments A Ltd. invests in compulsorily convertible preference shares (CCPS) issued by its subsidiary B Ltd. at 1,000 each ( 10 face value + 990 premium). Under the terms of the instrument each CCPS is compulsorily convertible into one equity share of B Ltd at the end of 5 years. Such CCPS carry dividend @ 12% per annum, payable only when declared at the discretion of B Ltd. Evaluate this under definition of financial instrument