FEMA Query on rights issue

This query is : Resolved

Shreenidhi (Querist)
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09 May 2020 A private limited company wants to issue shares through rights issue. All the shareholders of the Company are Non- Resident.

Can the company issue shares at Face value?
or
The price at which the shares to be issued needs to be determined as per valuation certificate?

c.bakshi

c.bakshi (Expert)
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09 May 2020 on right issue as per the section 64 of Companies Act, 2013,if you are issuing shares at consideration for cash then at face value if other than for cash then valuation needs to be done. you need to comply with and limit the no of shares as per FEMA act, 1999 also