Section 16C(b) in The Companies (Indian Accounting Standards) Rules, 2015
(b)The instrument is in the class of instruments that is subordinate to all other classes of instruments. To be in such a class the instrument:(i)has no priority over other claims to the assets of the entity on liquidation, and(ii)does not need to be converted into another instrument before it is in the class of instruments that is subordinate to all other classes of instruments.
