Private Placement without Separate Bank Account

[CS Alpesh Dhandhlya]

Dear Experts,

Our Group Company has received money in the Current Bank Account of the Company from one of the Directors.

Now, we want to do private placement of the same, Whether is there any option of the same ?

Whether any member has did like as above ?

 

[Pari S.]

Dear members,

I am in process of preparing documents for Private Placement.

My clients also ask me the same query.

They have received money in company's bank account ie. Current account from new investors.

They are asking me if there is any need to open a new account.

Members, Please clarify,.......

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[CA Sumit Parolia]

yes u have to open a separate bank a/c for private placement except in right issue process.

Regards,
ACA SUMIT PAROLIA
S PAROLIA & ASSOCIATES
Practicing Chartered Accountants
Kolkata

E-mail: Ca.pa...@gmail.com

[Pari S.]

But sir, they have already received the money...than why to open a new account and get it there....

what is the point in transferring all money there in separate account

[CA Sumit Parolia]

See provision are made for such now u and i can't change it.read the section

Provided that monies received on application under this section shall be kept in a

separate bank account in a scheduled bank and shall not be utilised for any purpose other

than—

(a) for adjustment against allotment of securities; or

(b) for the repayment of monies where the company is unable to allot securities.

Regards,
ACA SUMIT PAROLIA
S PAROLIA & ASSOCIATES
Practicing Chartered Accountants
Kolkata

E-mail: Ca.pa...@gmail.com

[CS Alpesh Dhandhlya]

Dear Experts,

If the monies are received under the old act, 1956 then can we do proceed belated private placement and can we file the same with additional fees with MCA ?

[csyogan .]

ms. pari,

there are lot of companies in India which are showing share application monies without actually allotting them. i have seen a group where hundreds of crores are parked as share application money. this is to normally avoid payment / receipt of interest & tds etc., further, they can save filing fee & stamp duty on authorized share capital by not allotting them. the Act also doesn't clarify whether authorized share capital has to be increased before making allotment... inorder to plug all these loopholes the Act has been designed in this manner. under the extant law, you have to park it in a seperate bank account and cannot withdraw unless you allot. so indirectly they are binding you to make allotment.

other members' may share their views pls.

regards,
yogan.

[csyogan .]

even under the old Act, separate bank account concept was there..

exceptions under the old Act being, the said provision wasn't applicable for :

- private company

- a private company which is subsidiary of a public company

regards,
yogan.

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[CS Ankit Misra]

u can made private placement under old act with additional fees only if blnc sheet is not yet filed.

On Sat, Jan 10, 2015 at 10:19 AM, CS Alpesh Dhandhlya <alpes...@gmail.com> wrote:

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regards,

ANKIT MISRA

COMPANY SECRETARY

KANPUR

8009968692

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