CL: Chapter III - Prospectus and Allotment of Securities: Private Placement (S.42) Share Application & Allotment
P.D.RUNGTA
Chapter III – Prospectus and Allotment of Securities
Private Placement (S.42) Share Application & Allotment
1. Special resolution required before offering shares of company, the notice of which shall include explanation for justification of price at which it is offered.
2. Cannot take fresh application if previous allotment of same or any other class of securities is pending.
3. All monies payable towards subscription of securities are to be paid through banking channels.
4. Invitation size per person should not be < Rs 20000/-
5. Application money to be kept in separate bank a/c.
6. Can make allotment to 50 persons in one offer and to 200 persons in aggregate in a FY by circulating the letter of offer in PAS-4.
7. Allotment should be made within 60 days of receipt of application money, else refund within 15 days after expiry of above 60 days. If not done, money to be refunded along with interest @12% p.a. from the 61st day.
8. The offer letter in PAS-4 should be sent to identified applicants and it should be made through a serially numbered application form.
9. Complete record of such offers sent to identified applicants is to be kept by the company either in written or electronic mode in PAS-5.
10. The private placement offer letter in Form PAS-4 along with a copy of above mentioned record in PAS-5 to be filed with Registrar within 30 days of circulation of offer along with fees.
11. Return of allotment to be filed in PAS-3 mentioning details of security made as well as details of security holder within 30 days of allotment to Registrar.
Penalty: Amount involved or 2 Crores whichever is higher plus application money to be refunded
Pramod Dayal Rungta Managing Partner: P.D.Rungta & Co., Chartered Accountants
Head Office: 21, Hement Basu Sarani, 3rd Floor , Room .No.317, Kolkata-700 001,West Bengal, India
Branches : Bhagalpur | Khatima | Mumbai | Ahemdabad | Banglore | Delhi
Homepage : http://www.pdrungta.co.in/
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